Number of US oil, gas rigs rises for first time in five weeks

The increase in the number of active oil and gas drilling rigs in the US during the reporting week was the strongest in more than four years. The cumulative number of active oil and gas rigs rose for the first time in five weeks.

The total number of active oil and gas rigs, a leading indicator of production, rose by 8 units to 754 in the week of March 11-17, Caliber.az reports with reference to Baker Hughes.

The total number of active rigs is 91 units, or 13.7 per cent, higher than a year ago.

The number of active oil rigs in the US fell 1 unit to 589, according to Baker Hughes, while the number of active gas rigs rose 9 units to 162.

Traders said the recent drop in energy prices has forced several oil and gas companies to reduce the number of rigs in use for three straight months, from December to February.

Meanwhile, US oil production could increase to 12.4 million barrels per day in 2023 from 11.9 million barrels per day in 2022, and reach 12.6 million barrels per day in 2024. The US Department of Energy's Energy Information Administration (EIA) projections presented in March indicated this. However, EIA estimates were lowered in March compared to February forecasts.

US natural gas production could increase from 98.09 Bcf/d in 2022 to 100.67 Bcf/d in 2023 to 101.69 Bcf/d in 2024.