US drillers add oil and gasoline rigs for third week in a row

By Scott DiSavino

(Reuters) – U.S. power corporations this week added oil and pure gasoline rigs for a 3rd week in a row for the primary time since December 2023, power providers agency Baker Hughes mentioned in its intently adopted report on Friday.

The oil and gasoline rig rely, an early indicator of future output, rose by two to 588 within the week to February 14.

Regardless of this week’s rig improve, Baker Hughes mentioned the entire rely was nonetheless down 33 rigs, or 5% beneath this time final yr.

Baker Hughes mentioned oil rigs rose by one to 481 this week, whereas gasoline rigs gained one to 101.

The oil and gasoline rig rely declined by about 5% in 2024 and 20% in 2023 as decrease U.S. oil and gasoline costs over the previous couple of years prompted power corporations to focus extra on paying down debt and boosting shareholder returns relatively than elevating output.

Prime oilfield providers supplier SLB is restructuring sure enterprise capabilities and anticipating extra job cuts, in response to a supply accustomed to the matter and an inner e-mail seen by Reuters.

The modifications come because the Houston-based firm has been engaged on a cost-savings initiative, in response to the supply, and is making ready for tepid development this yr as its prospects are extra cautious about spending amid issues of an oversupplied oil market.

Though analysts forecast U.S. spot crude costs would stay unchanged in 2025, the U.S. Power Info Administration (EIA) projected crude output would rise from a report 13.2 million barrels per day (bpd) in 2024 to round 13.6 million bpd in 2025.

On the gasoline facet, the EIA projected a 73% improve in spot gasoline costs in 2025 would immediate producers to spice up drilling exercise this yr after a 14% value drop in 2024 triggered a number of power corporations to chop output for the primary time for the reason that COVID-19 pandemic diminished demand for the gas in 2020. [NGAS/POLL]

The EIA projected gasoline output would rise to 104.6 billion cubic ft per day (bcfd) in 2025, up from 103.1 bcfd in 2024 and a report 103.6 bcfd in 2023.

(Reporting by Scott DiSavino; Modifying by Marguerita Choy)