Baker Hughes says the number of US oil and gas boards falls to its lowest levels since December 2021

Written by Scott DiFavino

(Reuters) – U.S. energy companies reduced the number of oil and natural gas rigs operating for a third straight week to the lowest level since December 2021, energy services company Baker Hughes said in its close report on Friday.

The number of oil and gas slabs, an early indicator of future production, fell by four to 576 in the week to January 24.

Baker Hughes said this week’s decline puts the cumulative drilling total at 45, or 7% below this time last year.

Oil rigs fell by six to 472 this week, the lowest since December 2021, while gas rigs rose by one to 99, Baker Hughes said.

In the Permian Basin of western Texas and eastern New Mexico, the nation’s largest oil-producing rock basin, the number of drilling fell by six in a week to 298, the lowest level since February 2022.

This decline of six in the Permian was the largest weekly decline since August 2023.

Oil and gas shingles are down about 5% in 2024 and 20% in 2023 as U.S. oil and gas prices over the past two years have pushed energy companies to focus more on paying down debt and increasing shareholder returns rather than increasing production.

Although analysts expect US crude prices to rise for a third straight year in 2025, the US Energy Information Administration (EIA) will expect them to rise from 13.2 million barrels per day (BPD) in 2024 to about 13.6 million BPD In 2025.

On the gas side, the EIA forecasts a 43% increase in spot gas prices in 2025, prompting producers to boost drilling activity this year after a 14% price drop in 2024 saw many energy companies cut for the first time since COVID-19. Pandemic reduces fuel demand in 2020. (NGAS/Poll)

EIA projected gas output will rise to 104.5 billion cubic feet per day (BCFD) in 2025, up from 103.1 BCFD in 2024 and a record 103.6 BCFD in 2023.

(Reporting by Scott Disavino; Editing by Marguerita Choy)