By Scott DiSavino
March 24 (Reuters) - U.S. energy firms this week added
oil and natural gas rigs for a second week in a row for the
first time since November, 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, rose four to 758 in the week to March 24. Baker Hughes said that puts the total rig count up 88, or
13%, over this time last year.
U.S. oil rigs rose four to 593 this week, up for the
first time in six weeks, while gas rigs held steady at 162.
U.S. oil futures were down about 14% so far this
year after gaining about 7% in 2022. U.S. gas futures ,
meanwhile, have plunged about 51% so far this year after rising
about 20% last year.
Energy analysts said those 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.
"Such a drastic movement in prices on the back of already
elevated well costs – which have risen by about 30% since 2021 –
will cause a slowdown in drilling and completions activity in
U.S. onshore natural gas basins, according to analysts at energy
consulting firm Rystad Energy.
Even though the gas rig count was currently up since the
start of the year, analysts said drillers have been cutting rigs
in some shale basins, especially the Haynesville in Arkansas,
Louisiana and Texas due to its higher production costs.
There have been 67 rigs active in the Haynesville over the
past four weeks, down from 72 at the end of 2022.
(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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