By Scott DiSavino
March 3 (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 August, energy services firm
Baker Hughes Co said in its closely followed report on
Friday.
The oil and gas rig count, an early indicator of future
output, fell by four to 749 in the week to March 3, the lowest
since June. Despite this week's rig decline, Baker Hughes said the
total count was still up 99 rigs, or 15%, over this time last
year.
U.S. oil rigs fell eight to 592 this week, their lowest
since September, while gas rigs rose three to 154.
Energy traders noted that the total oil and gas rig
count has declined for three months in a row due mostly to a
drop in energy prices.
U.S. oil futures were down about 1% so far this year
after gaining about 7% in 2022. U.S. gas futures ,
meanwhile, have plunged about 33% so far this year after rising
about 20% last year.
U.S. oil major Chevron Corp expanded its share
buyback program and laid out plans to add 750,000 barrels of oil
and gas per day to its U.S. production on gains from the
country's shale basins and the Gulf of Mexico.
Overall, U.S. crude production was on track to rise from
11.9 million barrels per day (bpd) in 2022 to 12.5 million bpd
in 2023 and 12.7 million bpd in 2024, according to projections
from the U.S. Energy Information Administration (EIA). That
compares with a record 12.3 million bpd in 2019.
In December, however, U.S. crude oil production fell to
12.10 million bpd, its lowest since August 2022, EIA data
showed.
U.S. gas production was to rise on track to rise from a
record 98.09 billion cubic feet per day (bcfd) in 2022 to 100.27
bcfd in 2023 and 101.68 bcfd in 2024, according to federal
energy data.
The independent exploration and production companies tracked
by U.S. financial services firm TD Cowen were on track to boost
spending by about 19% in 2023 versus 2022 after increasing
spending about 40% in 2022 and 4% in 2021 versus 2020.
(Reporting by Scott DiSavino
Editing by Marguerita Choy)
Messaging: scott.disavino.thomsonreuters.com@reuters.net))
For U.S./Canada natural gas rig count vs Henry Hub futures price, see: U.S. natural gas inventories: For a list of all Baker Hughes rig counts around the world, see: For U.S. oil rigs, see: For U.S. gas rigs, see: ))
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