In a significant development, U.S. energy firms have recorded the most substantial addition of oil and natural gas rigs in a single week since September, as reported by energy services firm Baker Hughes in its latest industry update. The oil and gas rig count, serving as a key gauge of future production levels, climbed by seven to reach 629 for the week ending on March 15. Despite this notable increase, the total rig count remains 125 rigs or 16.6% lower compared to the corresponding period last year. Baker Hughes highlighted that oil rigs surged by six to 510, marking their highest level since September, while gas rigs saw a modest uptick of one to 116. In the backdrop of a 20% decline in the oil and gas rig count in 2023 following substantial growth in the preceding years, factors such as fluctuating commodity prices, escalating operational costs, and strategic shifts towards debt reduction and shareholder returns have influenced industry dynamics. Notably, U.S. oil futures have shown a positive trajectory in 2024, with a notable increase of over 13% after a decline of 11% in 2023. Conversely, U.S. gas futures have experienced a downward trend this year, down approximately 33.7% following a 44% drop in 2023. Despite market fluctuations and reduced investment levels, the U.S. oil and gas sector is poised to achieve record production levels in 2024 and 2025, fueled by operational efficiencies and ongoing well development activities.
US Sees Largest Increase in Oil and Gas Rigs in a Week Since September – Baker Hughes