US drillers add oil and fuel rigs for second week in a row, Baker Hughes says

By Scott DiSavino

(Reuters) – U.S. power companies this week added oil and pure fuel rigs for a second week in a row for the primary time since July 2024, power companies agency Baker Hughes mentioned in its intently adopted report on Friday.

The oil and fuel rig rely, an early indicator of future output, rose by 4 to 586 within the week to February 7.

Regardless of this week’s rig improve, Baker Hughes mentioned the entire rely was nonetheless down 37 rigs, or 6% under this time final 12 months.

Baker Hughes mentioned oil rigs rose by one to 480 this week, whereas fuel rigs elevated by two to 100.

Progress in oil output from the U.S. Permian basin, the nation’s prime oilfield, is anticipated to sluggish by not less than 25% this 12 months regardless of President Donald Trump’s vow to maximise manufacturing, power executives forecast on Thursday.

Whereas the U.S. is already the world’s prime oil producer with output of about 13.2 million barrels per day (bpd) in 2024, complete U.S. manufacturing development has slowed in recent times, climbing solely about 280,000 bpd final 12 months.

The oil and fuel rig rely declined by about 5% in 2024 and 20% in 2023 as decrease U.S. oil and fuel costs over the previous couple of years prompted power companies to focus extra on paying down debt and boosting shareholder returns whereas rising drilling efficiencies to lift output.

To date, three of the 25 unbiased exploration and manufacturing (E&P) corporations tracked by U.S. monetary companies agency TD Cowen mentioned that on common they deliberate to chop spending in 2025 by round 6% from ranges seen in 2024.

That compares with roughly flat year-over-year spending in 2024, and will increase of 27% in 2023, 40% in 2022 and 4% in 2021.

(Reporting by Scott DiSavino; Modifying by Marguerita Choy)