Baker Hughes: US Oil, Gas Rig Count Up 21 To 1,527 This Week

The number of rigs drilling for oil and natural gas climbed this week as producers increased activity to take advantage of higher commodity prices.

The number of oil and gas rigs climbed to 1,527 rigs, up 21 rigs from the previous week, according to data from oil-field services company Baker Hughes Inc. (BHI). The number of gas rigs was 954, an increase of seven rigs from last week, while the oil rig count was 561, an increase of 16 rigs. The number of miscellaneous rigs fell by two to 12 rigs, while the offshore drilling rig count fell by three rigs this week to 21 rigs.

Oil and natural gas drilling has picked up as energy companies continue to exploit prolific onshore gas fields known as shales. Producers, who have locked in prices on future output, have maintained activity in shales to secure drilling leases.

Natural gas drilling activity has also been bolstered by higher prices for the fuel as traders, who had bet heavily on falling prices, buy back contracts ahead of increased summer demand for natural gas-fired power generation and on expectations for a busy Atlantic hurricane season. Natural gas futures prices have climbed about 9% over the last two weeks.

Producers such as Chesapeake Energy Corp. (CHK) and Devon Energy Corp. (DVN) and Newfield Exploration Co. (NFX) have also allocated more capital to finding domestic oil deposits in order to boost profits.

At the same time, offshore drilling activity has declined. The U.S. government imposed a six-month moratorium on offshore deepwater drilling while it investigates the events surrounding the explosion and fire aboard a Transocean Ltd. (RIG) rig that has led to a massive oil leak in the U.S. Gulf of Mexico. Oil has continued spew from that damaged BP Plc (BP) well at estimated rates of up to 40,000 barrels a day, damaging the Gulf Coast economy and environment.

Some activity, however, has continued as drillers move to a safe stopping point.

-By Jason Womack, Dow Jones Newswires; 713-547-9201; jason.womack@dowjones.com

Newfield Exp Com (NYSE:NFX)
Historical Stock Chart
From May 2024 to Jun 2024