U.S. energy firms this week operated the same number of oil and natural gas rigs as they did last week, energy services firm Baker Hughes said in its closely followed report on Dec. 13.
The oil and gas rig count, an early indicator of future output, was unchanged at 589 in the week to Dec. 13, Baker Hughes said.
Baker Hughes said the total count remained down from a year ago by 34 rigs, or 5%.
Baker Hughes said oil rigs held steady at 482 this week, while gas rigs rose by one to 103, their highest since July.
In 2023, the oil and gas rig count dropped about 20% after rising by 33% in 2022 and 67% in 2021, due to a decline in oil and gas prices, higher labor and equipment costs from soaring inflation and as companies focused on paying down debt and boosting shareholder returns instead of raising output.
U.S. oil futures were down about 1% so far in 2024 after dropping by 11% in 2023. U.S. gas futures were up 30% so far in 2024 after plunging by 44% in 2023.
U.S. crude output was on track to rise from a record 12.9 MMbbl/d in 2023 to 13.2 MMbbl/d in 2024 and 13.5 MMbbl/d in 2025, according to the latest U.S. Energy Information Administration (EIA) outlook.
On the gas side, several producers reduced drilling activities this year after monthly average spot prices at the U.S. Henry Hub benchmark in Louisiana plunged to a 32-year low in March, and have remained relatively low since then.
That reduction in drilling activity should cause U.S. gas output to decline for the first time since the COVID-19 pandemic cut demand for the fuel in 2020.
EIA projected gas output would slide to 103.2 Bcf/d in 2024, down from a record high of 103.8 Bcf/d in 2023.