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

By Scott DiSavino

(Reuters) – U.S. vitality companies this week added oil and pure fuel rigs for a fifth week in a row for the primary time since Could 2022, vitality companies agency Baker Hughes stated in its carefully adopted report on Friday.

The oil and fuel rig depend, an early indicator of future output, rose by one to 593 within the week to February 28, its highest since June.

Regardless of this week’s rig improve, Baker Hughes stated the whole depend was nonetheless down 36 rigs, or 6% beneath this time final 12 months.

Baker Hughes stated oil rigs fell by two to 486 this week, whereas fuel rigs rose by three to 102.

In February, whole oil and fuel rigs rose by 11, essentially the most in a month since November 2022, with oil rigs up seven, additionally the most important month-to-month achieve since November 2022, and fuel rigs up 4.

The oil and fuel rig depend 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 vitality companies to focus extra on boosting shareholder returns and paying down debt somewhat than elevating output.

The 22 unbiased exploration and manufacturing (E&P) firms tracked by U.S. monetary companies agency TD Cowen stated that on common they deliberate to chop spending in 2025 by round 1% 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; Enhancing by Marguerita Choy)