The U.S. oil and gas rig count remained unchanged at 585 for a third straight week, marking the longest steady period since 1987, with the total count down by 5% from last year. Oil rigs held at 479 and gas rigs at 102, while U.S. oil production is set to rise slightly through 2025, and gas output is expected to dip marginally in 2024. Reduced drilling by gas producers follows a significant drop in prices, while energy firms prioritize debt reduction and shareholder returns amidst inflationary pressures.
U.S. Energy Rig Count Summary for the Week Ending November 8, 2024
- Steady Rig Count: U.S. energy firms maintained the number of oil and gas rigs at 585 for a third consecutive week, the longest unchanged streak since Baker Hughes’ data began in 1987.
- Comparison to Previous Year: The total rig count is down by 31 rigs (5%) compared to the same period last year, when it was 616.
- Oil and Gas Breakdown:
- Oil Rigs: Remained unchanged at 479 this week.
- Gas Rigs: Held steady at 102 this week.
- Yearly Trends: The rig count fell by about 20% in 2023 due to lower commodity prices, rising costs, and a strategic focus on debt reduction and shareholder returns.
- U.S. Production Forecast:
- Crude Oil Output: On track to increase from a record 12.9 million barrels per day (bpd) in 2023 to 13.2 million bpd in 2024 and 13.5 million bpd in 2025, as per the U.S. Energy Information Administration (EIA).
- Natural Gas Output: Expected to decrease slightly to 103.5 billion cubic feet per day (bcfd) in 2024 from a record high of 103.8 bcfd in 2023, following reduced drilling activity due to historically low gas prices earlier in the year.
Key Highlights from the NAM Summary Table:
- Inland Waters: Rig count increased by 1, reaching a total of 2 rigs.
- Land Rigs: Increased by 1, totaling 569 rigs, but still 26 rigs below last year’s count of 595.
- Offshore Rigs: Decreased by 2, with a current total of 14 rigs, down by 5 rigs compared to the previous year.
- Total U.S. Rig Count: Stands at 585, unchanged from last week but down by 31 rigs year-over-year.
This stability in rig counts suggests a cautious approach by energy firms, balancing operational efficiency and capital discipline in response to market conditions.
