(Adds rig count in Haynesville basin in paragraph 6)
By Scott DiSavino
May 5 (Reuters) - U.S. energy firms cut the most oil and
natural gas rigs in a week since February, 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 seven to 748 in the week to May 5. Despite this week's rig decline, Baker Hughes said the total
count was still up 43 rigs, or 6%, over this time last year.
Oil rigs fell by three to 588 this week, in their biggest
weekly decline since March. Gas rigs fell by four to 157, their
biggest weekly decline since February.
U.S. oil futures were down about 11% so far this year
after gaining about 7% in 2022. U.S. gas futures ,
meanwhile, have plunged about 52% so far this year after rising
about 20% last year.
That drop in gas prices helped cause the number of rigs
active in the Haynesville basin in Arkansas, Louisiana and
Texas, the nation's third biggest shale gas field, to fall this
week to 62, its lowest since March 2022, according to Baker
Hughes.
U.S. oil and gas production grew rapidly in the first
two months of 2023 – a delayed response to the high prices and
upturn in drilling that characterized much of last year
following Russia’s invasion of Ukraine.
But growth is set to decelerate sharply as the more recent
slump in prices curtails new drilling and well completions, with
the impact evident by the fourth quarter of 2023.
This week, Chesapeake Energy Corp , EOG Resources and APA Corp said they could delay some well
completions or ramp down drilling due to weak prices.
Shale producer Diamondback Energy , however, noted
rig prices are falling and steel costs are set to decline by
about $20-$25 per foot, a sign the inflationary pressures that
plagued the oilfield in the past year are easing.
(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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