U.S. energy firms this week added oil and natural gas rigs for a third week in a row, but growth in the third quarter slowed due to recession fears and nagging supply shortages.
The oil and gas rig count, an early indicator of future output, rose one to 765 in the week to Sept. 30, energy services firm Baker Hughes Co. said in its closely followed report.
Baker Hughes said that puts the total rig count up 237, or 45%, over this time last year.
U.S. oil rigs rose two to 604 this week, while gas rigs fell one to 159.
For the month, drillers kept the number of rigs unchanged after cutting them in August.
In the third quarter, drillers added rigs for an eighth quarter in a row but the addition of 12 rigs was the smallest increase since September 2020.
Production has been rising but slowly with latest government monthly data showing crude production rose 0.1% to 11.8 million bbl/d in July, its highest since April 2020, while gas output grew by 100 MMcf/d to a record 109.6 Bcf/d in the month.
U.S. energy executives are fearful an economic recession will cut oil and gas demand, complicating the picture for an industry already beset by supply chain issues and rising costs, according to a survey released on Sept. 28 by the Federal Reserve Bank of Dallas.
The Fed’s company outlook index fell a whopping 33 points during the quarter to 33.1, while its uncertainty index jumped nearly threefold to 35.7, according to the survey, which polled 163 companies across Texas, New Mexico and Louisiana. The activity index declined to 46 from a record 57.7 in the previous quarter.
Recommended Reading
Pearl Energy Investments Closes Fund IV with $999.9MM
2025-02-04 - Pearl Energy Investments’ Fund IV met its hard cap within four months of launching and closed on Jan. 31.
Double Eagle Team Re-Ups in Permian, Backed by EnCap’s $2.5B
2025-04-02 - The fifth iterations of Double Eagle Energy and its minerals subsidiary, Tumbleweed Royalty, have received a $2.5 billion equity commitment from EnCap Investments LP—the day the E&P finalized a $4.1 billion sale to Diamondback Energy.
Pinnacle Midstream Execs Form Energy Spectrum-Backed Renegade
2025-02-03 - Renegade Infrastructure, led by Permian-centric Pinnacle Midstream developers Drew Ward and Jason Tanous, have received a capital commitment from Energy Spectrum Partners.
Phillips 66’s NGL Focus, Midstream Acquisitions Pay Off in 2024
2025-02-04 - Phillips 66 reported record volumes for 2024 as it advances a wellhead-to-market strategy within its midstream business.
Phillips 66 Urges Shareholders to Vote Against Elliott at Annual Meeting
2025-04-08 - Phillips 66’s board of directors is again pushing against one of its largest investors—Elliott Investment Management—with a letter to shareholders detailing how to vote against the investment company at its upcoming annual meeting.
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.