U.S. energy firms this week added oil and natural gas rigs for the first time in eight weeks, energy services firm Baker Hughes said in its closely followed report on Dec. 6.
The oil and gas rig count, an early indicator of future output, rose by seven to 589 in the week to Dec. 6, its highest since mid-September.
Despite this week's rig increase, Baker Hughes said the total count was still down 37, or 6% below this time last year.
Baker Hughes said oil rigs rose five to 482 this week, their highest since mid-October, while gas rigs rose by two to 102, the highest since early November.
The oil and gas rig count dropped about 20% in 2023 after rising by 33% in 2022 and 67% in 2021, due to a decline in oil and gas prices, higher labor and equipment costs from soaring inflation and as companies focused on paying down debt and boosting shareholder returns instead of raising output.
U.S. oil futures were down 6% so far in 2024 after dropping by 11% in 2023. U.S. gas futures were up 23% so far in 2024 after plunging by 44% in 2023.
The 25 independent exploration and production (E&P) companies tracked by U.S. financial services firm TD Cowen said that on average the E&Ps planned to leave spending in 2024 roughly unchanged from 2023.
That compares with year-over-year spending increases of 27% in 2023, 40% in 2022 and 4% in 2021.
U.S. crude output was on track to rise from a record 12.9 MMbbl/d in 2023 to 13.2 MMbbl/d in 2024 and 13.5 MMbbl/d in 2025, according to the latest U.S. Energy Information Administration (EIA) outlook.
On the gas side, several producers reduced drilling activities this year after monthly average spot prices at the U.S. Henry Hub benchmark in Louisiana plunged to a 32-year low in March, and have remained relatively low since then.
That reduction in drilling activity should cause U.S. gas output to decline for the first time since the COVID-19 pandemic cut demand for the fuel in 2020.
EIA projected gas output would slide to 103.4 Bcf/d in 2024, down from a record high of 103.8 Bcf/d in 2023.
Recommended Reading
Woodside Reports Record Q3 Production, Narrows Guidance for 2024
2024-10-17 - Australia’s Woodside Energy reported record production of 577,000 boe/d in the third quarter of 2024, an 18% increase due to the start of the Sangomar project offshore Senegal. The Aussie company has narrowed its production guidance for 2024 as a result.
Geologist James Parr Joins Ring as EVP of Exploration, Geosciences
2024-11-26 - James Parr joins Ring Energy with over 30 years of experience as a petroleum geologist and leader in multiple energy organizations.
Mexico Pacific Working with Financial Advisers to Secure Saguaro LNG I FID
2024-10-23 - Mexico Pacific is working with MUFG, Santander and JP Morgan to arrange the financing needed to support FID and the anchor phase of Saguaro Energía LNG.
Tellurian Stockholders Approve $900MM Woodside Acquisition
2024-10-07 - Woodside Energy has said it expects to close the acquisition of Tellurian, and its Driftwood LNG permitted facility, by December.
BKV Prices IPO at $270MM Nearly Two Years After First Filing
2024-09-25 - BKV Corp. priced its common shares at $18 each after and will begin trading on Sept. 26, about two years after the Denver company first filed for an IPO.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.