US Increases in Oil, Gas Rigs for First Time in Four Weeks

US Increases in Oil, Gas Rigs for First Time in Four Weeks

US drillers have added oil and gas rigs for the first time in four weeks, according to the latest report from energy services firm Baker Hughes.

The rig count increased by one to 604 in the week ending May 17.

While this week’s increase is a positive sign, Baker Hughes noted that the total count is still down by 116, or 16%, compared to the same time last year.

The report also revealed that oil rigs rose by one to 497, while gas rigs remained unchanged at 103.

This news comes after a challenging period for the industry, with the oil and gas rig count dropping by about 20% in 2023. This decline was a result of lower oil and gas prices, as well as higher labor and equipment costs due to soaring inflation. Additionally, companies have been focusing on paying down debt and increasing shareholder returns rather than ramping up production.

However, US oil futures have seen an 11% increase so far in 2024, after experiencing an 11% drop in 2023. Similarly, US gas futures have risen by 3% in 2024, following a 44% decline in 2023.

Oil output from top shale-producing regions will rise in June to its highest in six months, while gas production in the big shale basins will slide to a five-month low, the U.S. Energy Information Administration (EIA) said in its monthly Drilling Productivity Report on Monday.

This increase in shale production is largely due to improved well productivity. In fact, the Permian basin, which spans across West Texas and New Mexico, is expected to see the highest monthly output per rig since November 2021.

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Doaa Ashraf 458 Posts

Doaa is a staff writer with a Bachelor's Degree in Mass Communication, majoring Journalism from Ahram Canadian University. She has 2-3 years of experience in copywriting, and content creation.

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