By Scott DiSavino
March 31 (Reuters) - U.S. energy firms this week cut the
number of oil and natural gas rigs, with the quarterly count
dropping for the first time since 2020, 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 three to 755 in the week to March 31. Despite this week's rig decline, Baker Hughes said the total
count was still up 82 rigs, or 12%, over this time last year.
U.S. oil rigs fell one to 592 this week, while gas rigs
decreased two to 160.
For the month, the total oil and gas rig count rose two
rigs, the first monthly increase since November.
For the quarter, the total oil and gas rig count fell by 24
rigs, the first quarterly decline since the third quarter of
2020.
U.S. oil futures were down about 6% 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.
The drop in gas prices has already caused some exploration
and production companies, including Chesapeake Energy Corp , Southwestern Energy Co and Comstock Resources
Inc , to announce plans to reduce production by cutting
some gas rigs.
U.S. field production of crude oil rose in January to 12.46
million barrels per day (bpd), the highest since March 2020,
Energy Information Administration (EIA) data showed.
Gross natural gas production in the U.S. Lower 48 states
jumped by 2.9 billion cubic feet per day (bcfd) to 112.3 bcfd in
January, the most since hitting a record 112.4 bcfd in November
2022, the EIA said.
(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: ))
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.