1. Home
  2. Infrastructure Energy
  3. OIL & GAS
  4. U.S. drillers reduce oil and gas rigs for second consecutive week
U.S. drillers reduce oil and gas rigs for second consecutive week
OIL & GAS

U.S. drillers reduce oil and gas rigs for second consecutive week

27 Aug 2024 2 Min Read CW Team
U.S. energy companies have reduced the number of active oil and natural gas rigs for the second straight week, marking the first such decline since late June, according to Baker Hughes' report. The total rig count, an early indicator of future production, fell by one to 585 during the week ending August 23. This brings the rig count down by 47, or 7%, compared to the same period last year. Specifically, the number of oil rigs remained unchanged at 483, while gas rigs decreased by one, bringing the total to 97. The rig count has dropped by about 20% in 2023, following increases of 33% in 2022 and 67% in 2021. This decline is attributed to falling oil and gas prices, higher labour and equipment costs due to inflation, and a strategic shift by companies to prioritise debt reduction and shareholder returns over increasing production. Despite a 5% rise in U.S. oil futures so far in 2024, following an 11% drop in 2023, U.S. gas futures have decreased by about 19% this year after a 44% plunge in 2023. The increase in oil prices is expected to encourage drillers to boost U.S. crude output, with projections from the U.S. Energy Information Administration (EIA) suggesting production will rise from a record 12.9 million barrels per day (bpd) in 2023 to 13.2 million bpd in 2024 and 13.7 million bpd in 2025.

On the natural gas front, several producers have cut back on drilling activities earlier this year after prices fell to their lowest levels in three and a half years during February and March. This reduction in drilling is expected to decrease U.S. gas output to 103.3 billion cubic feet per day (bcfd) in 2024, down from the record high of 103.8 bcfd in 2023, according to the EIA.

(ET)

U.S. energy companies have reduced the number of active oil and natural gas rigs for the second straight week, marking the first such decline since late June, according to Baker Hughes' report. The total rig count, an early indicator of future production, fell by one to 585 during the week ending August 23. This brings the rig count down by 47, or 7%, compared to the same period last year. Specifically, the number of oil rigs remained unchanged at 483, while gas rigs decreased by one, bringing the total to 97. The rig count has dropped by about 20% in 2023, following increases of 33% in 2022 and 67% in 2021. This decline is attributed to falling oil and gas prices, higher labour and equipment costs due to inflation, and a strategic shift by companies to prioritise debt reduction and shareholder returns over increasing production. Despite a 5% rise in U.S. oil futures so far in 2024, following an 11% drop in 2023, U.S. gas futures have decreased by about 19% this year after a 44% plunge in 2023. The increase in oil prices is expected to encourage drillers to boost U.S. crude output, with projections from the U.S. Energy Information Administration (EIA) suggesting production will rise from a record 12.9 million barrels per day (bpd) in 2023 to 13.2 million bpd in 2024 and 13.7 million bpd in 2025. On the natural gas front, several producers have cut back on drilling activities earlier this year after prices fell to their lowest levels in three and a half years during February and March. This reduction in drilling is expected to decrease U.S. gas output to 103.3 billion cubic feet per day (bcfd) in 2024, down from the record high of 103.8 bcfd in 2023, according to the EIA. (ET)

Next Story
Infrastructure Urban
15 Nov 2024

Shoals' Q3 2024 revenue falls 23.9% due to project delays, supply chain

Shoals Technologies Group, a U.S.-headquartered manufacturer of electrical balance of systems (EBOS) for solar, energy storage, and e-mobility, reported a 23.9% year-over-year (YoY) decline in revenue, which dropped to $102.2 million in the third quarter (Q3) of 2024. This decline was mainly attributed to project delays and supply chain disruptions. The company posted a net loss of $300,000, a significant improvement compared to the $9.8 million net loss in Q3 2023. Adjusted net income was reported at $13.9 million, reflecting a 58.2% YoY decrease. Adjusted EBITDA stood at $24.5 million, a 4..

Read More
Next Story
Infrastructure Energy
15 Nov 2024

FTC Solar sees 67% YoY decline in Q3 revenue from lower volumes

FTC Solar, a U.S.-based provider of solar tracker systems, reported a revenue of $10.14 million in the third quarter (Q3) of 2024, surpassing analyst expectations by $240,680. However, this figure marked a 66.8% year-over-year (YoY) decline compared to the same quarter in 2023, primarily attributed to reduced product volumes. The decline in solar tracker revenue was mainly due to an 82% decrease in the amount of MW produced, which was negatively impacted by delays in customer projects. This was partially offset by an increase in the average selling price (ASP), which led to better pricing an..

Read More
Next Story
Infrastructure Urban
15 Nov 2024

Dilip Buildcon wins bid for BharatNet Phase III broadband project

Dilip Buildcon announced on Tuesday, November 12, that its STL-DBL consortium had submitted the lowest bid for BSNL's BharatNet Phase III broadband connectivity project. The USOF-funded project, which aims to provide middle and last-mile connectivity in Jammu Kashmir and Ladakh, is valued at Rs.1,625.36 Crore. Dilip Buildcon holds a 70.23% stake in the implementation of the project. The project is expected to be completed in three years, and the corporation will secure a 10-year maintenance contract. In recent days, BSNL has awarded several contracts for the BharatNet project. On Monday, No..

Read More

Opinion Poll

Question : Which technological advancement do you believe will most transform the real estate industry in the coming years?

Latest updates

Shoals' Q3 2024 revenue falls 23.9% due to project delays, supply chain
ECONOMY & POLICY
15 Nov 2024

Shoals' Q3 2024 revenue falls 23.9% due to project delays, supply chain

FTC Solar sees 67% YoY decline in Q3 revenue from lower volumes
POWER & RENEWABLE ENERGY
15 Nov 2024

FTC Solar sees 67% YoY decline in Q3 revenue from lower volumes

Dilip Buildcon wins bid for BharatNet Phase III broadband project
ECONOMY & POLICY
15 Nov 2024

Dilip Buildcon wins bid for BharatNet Phase III broadband project

KPIL secures new orders worth Rs 22.73 billion
Real Estate
15 Nov 2024

KPIL secures new orders worth Rs 22.73 billion

NMDC Steel Q2 loss expands to Rs 5.95 bn, income at Rs 15.35 bn
Steel
15 Nov 2024

NMDC Steel Q2 loss expands to Rs 5.95 bn, income at Rs 15.35 bn

Kochi's Valanthakad Island to Get Bus Connectivity with Bridge Completion
RAILWAYS & METRO RAIL
15 Nov 2024

Kochi's Valanthakad Island to Get Bus Connectivity with Bridge Completion

KTR Demands Cancellation of Rs.88 Billion AMRUT Tenders
ECONOMY & POLICY
15 Nov 2024

KTR Demands Cancellation of Rs.88 Billion AMRUT Tenders

Bengaluru-Chennai Expressway: 72km Karnataka Stretch Completed
ROADS & HIGHWAYS
15 Nov 2024

Bengaluru-Chennai Expressway: 72km Karnataka Stretch Completed

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000