U.S. energy firms this week cut the number of oil and natural gas rigs operating for the fourth time in five weeks, energy services firm Baker Hughes said in its closely followed report on Oct. 18.

The oil and gas rig count, an early indicator of future output, fell by one to 585 in the week to Oct. 18. 

Baker Hughes said that puts the total rig count down 39 rigs, or 6% below this time last year.

Additional data on the breakdown of the number of oil and gas rigs was not immediately available on the Baker Hughes website. Officials at the company were also not immediately available for comment.

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 about 3% so far in 2024 after dropping by 11% in 2023, while U.S. gas futures were about 10% lower so far in 2024 after plunging by 44% in 2023.

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