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U.S. Oil and Gas Rigs Rise Amid Shifting Market Dynamics
24 Dec
Summary
- Total oil and gas rigs increased by three to 545 this week.
- The overall rig count is down 7.5% compared to last year.
- Future U.S. crude output is projected to rise despite price forecasts.
U.S. energy firms have broken a three-week streak of declines by adding oil and gas rigs. In the week ending December 23, the total number of active rigs rose by three to 545, signaling a potential shift in production strategies. Despite this recent increase, the overall rig count stands 7.5% lower than at the same point last year.
The number of oil rigs saw an increase of three, reaching 409, while gas rigs remained steady at 127. These fluctuations occur against a backdrop of lower energy prices over the past two years, which had previously led firms to prioritize shareholder returns and debt reduction over increased output. This has resulted in a notable decrease in rig counts compared to previous years.
Looking ahead, projections indicate continued growth in U.S. crude oil production, with output expected to rise from a record 13.2 million barrels per day in 2024 to approximately 13.6 million barrels per day in 2025. Similarly, natural gas output is forecasted to increase to 107.7 billion cubic feet per day in 2025, driven by anticipated higher spot gas prices.
