U.S. energy firms this week cut the number of oil and natural gas rigs, with the quarterly count dropping for the first time since 2020, energy services firm Baker Hughes Co. said in its closely followed report on March 31.
The oil and gas rig count, an early indicator of future output, fell by three to 755 in the week to March 31.
Despite this week's rig decline, Baker Hughes said the total count was still up 82 rigs, or 12%, over this time last year.
U.S. oil rigs fell one to 592 this week, while gas rigs decreased two to 160.
For the month, the total oil and gas rig count rose two rigs, the first monthly increase since November.
For the quarter, the total oil and gas rig count fell by 24 rigs, the first quarterly decline since the third quarter of 2020.
U.S. oil futures were down about 6% so far this year after gaining about 7% in 2022. U.S. gas futures, meanwhile, have plunged about 51% so far this year after rising about 20% last year.
The drop in gas prices has already caused some exploration and production companies, including Chesapeake Energy Corp , Southwestern Energy Co and Comstock Resources Inc, to announce plans to reduce production by cutting some gas rigs.
U.S. field production of crude oil rose in January to 12.46 million barrels per day (bbl/d), the highest since March 2020, Energy Information Administration (EIA) data showed.
Gross natural gas production in the U.S. Lower 48 states jumped by 2.9 billion cubic feet per day (Bcf/d) to 112.3 Bcf/d in January, the most since hitting a record 112.4 Bcf/d in November 2022, the EIA said.