U.S. oil futures were down nearly 17% so far this
year after gaining about 7% in 2022. U.S. gas futures ,
meanwhile, have plunged about 47% so far this year after rising
about 20% last year.
Energy traders said recent energy price declines have
already caused several exploration and production companies to
cut back on the number of rigs they use to drill for oil and gas
for three months in a row from December-February.
This week's jump in gas rigs comes even as some energy firms
have said in recent weeks that they would cut the number of rigs
drilling for gas, especially in the Haynsesville shale in
Arkansas, Louisiana and Texas.
Despite lower rig counts seen in recent months, 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.
Those oil production forecasts for 2023 and 2024, however,
were smaller than EIA's projections in February.
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.
Those gas production forecasts for 2023 and 2024 were bigger
than EIA's projections in February.
(Reporting by Bharat Govind Gautam in Bengaluru
Editing by Marguerita Choy)
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: ))
