U.S. Oil & Gas Rig Count Falls for Second Week in a Row – Baker Hughes

The oil and gas rig count, an early indicator of future output, fell by four to 751 in the week to April 6. RIG-USA-BHIRIG-OL-USA-BHIRIG-GS-USA-BHI

Baker Hughes released the rig count one day earlier than usual due to the Good Friday holiday on April 7.

Despite this week’s rig decline, Baker Hughes said the total count was still up 62 rigs, or 9%, over this time last year.

U.S. oil rigs fell by two to 590 this week, while gas rigs dropped by two to 158.

U.S. oil futures were up about 6.7% so far this year after gaining about 7% in 2022. U.S. gas futures, meanwhile, have plunged about 53% so far this year after rising about 20% last year.

The drop in gas prices has already caused some exploration and production companies, including Chesapeake Energy Corp , Southwestern Energy Co and Comstock Resources Inc, to announce plans to reduce production by cutting some gas rigs.

Despite some plans to lower rig counts, U.S. crude production was still on track to rise from 11.9 million barrels per day (bpd) in 2022 to 12.4 million bpd in 2023 and 12.6 million bpd in 2024, according to projections from the U.S. Energy Information Administration (EIA) in March. That compares with a record 12.3 million bpd in 2019.

U.S. gas production, meanwhile, was on track to rise from a record 98.09 billion cubic feet per day (bcfd) in 2022 to 100.67 bcfd in 2023 and 101.69 bcfd in 2024, according to federal energy data in March. (Reporting by Scott DiSavino and Brijesh Patel; Editing by Marguerita Choy)