Active Drilling Rig Count - June 19
Posted: Mon Jun 19, 2023 9:29 am
Reuters: Last week U.S. energy firms cut the number of oil and natural gas rigs operating for a seventh week in a row for the first time since July 2020, energy services firm Baker Hughes Co (BKR.O) said in its closely followed report on Friday. The oil and gas rig count, an early indicator of future output, fell by 8 to 687 in the week to June 16, the lowest since April 2022. Baker Hughes said that puts the total count down by 53 rigs, or 7%, over this time last year.
U.S. oil rigs fell by 4 to 552 this week, their lowest since April 2022, while gas rigs fell 5 to 130, their lowest since March 2022.
Two shale regions each lost four rigs this week, the Permian in Texas and New Mexico, the nation's biggest oil basin, and the Marcellus in Pennsylvania, West Virginia and Ohio, the nation's biggest gas basin.
The rig count fell to 342 in the Permian, its lowest since September 2022, and 35 in the Marcellus, its lowest since March 2023, according to Baker Hughes.
Market forces at work to tighten up the U.S. natural gas market:
The massive drop in gas prices has already caused some exploration and production companies, including Chesapeake Energy Corp (CHK), Southwestern Energy Co (SWN) and Comstock Resources Inc (CRK), to announce plans to reduce production by cutting some rigs - especially in the Haynesville shale in Arkansas, Louisiana and Texas.
Analysts at energy advisory Tudor Pickering Holt & Co, the energy business of Perella Weinberg Partners, projected the rig count in the Haynesville area would ultimately decline to the high 40s from a recent peak of 76.
U.S. oil rigs fell by 4 to 552 this week, their lowest since April 2022, while gas rigs fell 5 to 130, their lowest since March 2022.
Two shale regions each lost four rigs this week, the Permian in Texas and New Mexico, the nation's biggest oil basin, and the Marcellus in Pennsylvania, West Virginia and Ohio, the nation's biggest gas basin.
The rig count fell to 342 in the Permian, its lowest since September 2022, and 35 in the Marcellus, its lowest since March 2023, according to Baker Hughes.
Market forces at work to tighten up the U.S. natural gas market:
The massive drop in gas prices has already caused some exploration and production companies, including Chesapeake Energy Corp (CHK), Southwestern Energy Co (SWN) and Comstock Resources Inc (CRK), to announce plans to reduce production by cutting some rigs - especially in the Haynesville shale in Arkansas, Louisiana and Texas.
Analysts at energy advisory Tudor Pickering Holt & Co, the energy business of Perella Weinberg Partners, projected the rig count in the Haynesville area would ultimately decline to the high 40s from a recent peak of 76.