U.S. energy firms this week cut the number of oil and natural gas rigs operating for a second week in a row for the first time since early October, energy services firm Baker Hughes said in its closely followed report on Nov. 22.
The oil and gas rig count, an early indicator of future output, fell by one to 583 in the week to Nov. 22, the lowest since early September.
That puts the total rig count down 39, or 6% below this time last year.
Baker Hughes said oil rigs rose by one to 479 this week, while gas rigs fell by two to 99.
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 2% so far in 2024 after dropping by 11% in 2023, while U.S. gas futures were up about 42% so far in 2024 after plunging by 44% in 2023.
The 25 independent E&P companies tracked by U.S. financial services firm TD Cowen said that on average they 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.
Recommended Reading
Constellation Bets Big on NatGas in $16.4B Deal for Calpine
2025-01-10 - Constellation Energy will acquire Calpine Corp. in a $26.6 billion deal, including debt, that will give the pure-play nuclear company the largest natural gas power generation fleet.
Crescent Energy Bolts On $905MM Central Eagle Ford Acreage
2024-12-03 - Crescent Energy will purchase Eagle Ford assets from Carnelian Energy Capital Management-backed Ridgemar Energy for $905 million, plus WTI-based contingency payments of up to $170 million.
Blackstone in Talks to Buy US Pipeline Stakes from EQT for $3.5B, Sources Say
2024-10-28 - If the talks are successful, the deal would help natural gas producer EQT slash the debt pile it accumulated from its acquisition of pipeline operator Equitrans Midstream earlier this year.
STEP Energy Services Drops Go-Private Deal as Shareholders Balk
2024-12-20 - STEP Energy Services has terminated its agreement with ARC Energy Fund 8 to go private in an all-cash transaction for CA$5 per share.
Coterra to Acquire Permian Assets from Franklin, Avant for $3.95B
2024-11-13 - Coterra made its long-awaited move to grow dramatically in the Permian, moving on large portions in New Mexico’s Delaware Basin.
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.