Baker Hughes: US oil & gas rig count at lowest since Dec 2021

Scott DiSavino
Friday, January 24, 2025
(c) LukasZ / Adobestock

U.S. energy firms this week cut the number of oil and natural gas rigs operating for a third week in a row to the lowest since December 2021, energy services firm Baker Hughes BKR.O said in its closely followed report on Friday.

The oil and gas rig count, an early indicator of future output, fell by four to 576 in the week to Jan. 24. RIG-USA-BHI, RIG-OL-USA-BHI, RIG-GS-USA-BHI

Baker Hughes said this week's decline puts the total rig count down 45, or 7% below this time last year.

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

The oil and gas rig count declined by about 5% in 2024 and 20% in 2023 as lower U.S. oil CLc1 and gas NGc1 prices over the past couple of years prompted energy firms to focus more on paying down debt and boosting shareholder returns rather than raising output.

Even though analysts forecast U.S. spot crude prices could decline for a third year in a row in 2025, the U.S. Energy Information Administration (EIA) projected crude output would rise from a record 13.2 million barrels per day (bpd) in 2024 to around 13.6 million bpd in 2025.

On the gas side, the EIA projected a 43% increase in spot gas NG-W-HH-SNL prices in 2025 would prompt producers to boost drilling activity this year after a 14% price drop in 2024 caused several energy firms to cut output for the first time since the COVID-19 pandemic reduced demand for the fuel in 2020. NGAS/POLL

The EIA projected gas output would 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.

Categories: Offshore People Offshore Energy Drilling Activity

Related Stories

TenneT Installs Giant HVDC Offshore Wind Converter Platform in North Sea

TenneT Installs Giant HVDC Offshore Wind Converter Platform in North Sea

ABL Lands Work on BP’s Indonesian Gas and CCUS Project

ABL Lands Work on BP’s Indonesian Gas and CCUS Project

Seatrium Picks ABB to Supply Electrical Equipment for Petrobras' FPSOs

Seatrium Picks ABB to Supply Electrical Equipment for Petrobras' FPSOs

Current News

Chartwell Marine to Design CTV for NR Marine Services

Equinor Selects Baker Hughes for P&A Ops at Oseberg East Field

Poland to Open 4GW Offshore Wind Auction in December

North Sea Operator Picks OEG for Offshore Helifuel Services

Subscribe for OE Digital E‑News

Offshore Engineer Magazine