The oil and gas rig count, an early indicator of future output, rose eight to 754 in the week to March 17. , ,
Baker Hughes said that puts the total rig count up 91 rigs, or 13.7%, over this time last year.
Oil rigs fell one to 589 this week, while gas rigs rose nine to 162.
U.S. oil futures were down nearly 17% so far this year after gaining about 7% in 2022. U.S. gas futures , meanwhile, have plunged about 47% so far this year after rising about 20% last year.
Energy traders said recent energy price declines have already caused several exploration and production companies to cut back on the number of rigs they use to drill for oil and gas for three months in a row from December-February.
Despite lower rig counts seen in recent months, U.S. crude production was still on track to rise from 11.9 million barrels per day (bpd) in 2022 to 12.4 million bpd in 2023 and 12.6 million bpd in 2024, according to projections from the U.S. Energy Information Administration (EIA) in March. That compares with a record 12.3 million bpd in 2019.
Those oil production forecasts for 2023 and 2024, however, were smaller than EIA’s projections in February.
U.S. gas production, meanwhile, was on track to rise from a record 98.09 billion cubic feet per day (bcfd) in 2022 to 100.67 bcfd in 2023 and 101.69 bcfd in 2024, according to federal energy data in March.
Those gas production forecasts for 2023 and 2024 were bigger than EIA’s projections in February.
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