US Drillers Cut Oil and Gas Rigs for Third Week in a Row – Baker Hughes

(Reuters) – U.S. energy firms this week cut the number of oil and natural gas rigs operating for a third week in a row for the first time since early October, energy services firm Baker Hughes said in its closely followed report on Wednesday.

The oil and gas rig count, an early indicator of future output, fell by one to 582 in the week to Nov. 27, the lowest since September.

Baker Hughes released the report two days early due to the U.S. Thanksgiving Day holiday on Thursday.

That puts the total rig count down 43, or 7%, below this time last year.

Baker Hughes said oil rigs fell by two to 477 this week, their lowest since July, while gas rigs rose by one to 100.

In November, drillers cut three oil and gas rigs, putting the total count down for a second month in a row for the first time since June.

That monthly cut came after drillers pulled three oil rigs and one gas rig.

For the past six months, the total rig count has stagnated between 581 to 589.

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 5% so far in 2024 after dropping by 11% in 2023, while U.S. gas futures were up about 28% so far in 2024 after plunging by 44% in 2023.

Reporting by Scott DiSavino Editing by Marguerita Choy

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