The oil and gas rig count, an early indicator of future output, fell by seven to 581 in the week to June 28. , ,

     Baker Hughes said that puts the total rig count down 93 rigs, or 14%, below this time last year.

     The energy service mention oil rigs fell six to 479 this week, their lowest since December 2021, while gas rigs fell one to 97, their lowest since 2021.

     For the month, the gas rig count fell for the fourth straight month for the first time since July 2020. For the quarter, the total oil and gas rig count fell for a sixth quarter in a row for the first time since 2020.

     Drillers cut the total number of active rigs in Texas by five to 277, the lowest since January 2022, and cut the count in Oklahoma by one to 34 rigs, the lowest since September 2021.

     In shale basins, drillers cut the total number of active rigs in the Permian in West Texas and eastern New Mexico by three to 305, the lowest since February 2022, and in the Eagle Ford in South Texas by 3 to 47, the lowest since January 2022.

     The oil and gas rig count dropped about 20% in 2023 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 up about 14% so far in 2024 after dropping by 11% in 2023, while U.S. gas futures were up about 4% so far in 2024 after plunging by 44% in 2023.

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Photo Credits: A pump jack operates in front of a drilling rig at sunset in an oil field in Midland, Texas U.S. August 22, 2018. Picture taken August 22, 2018. REUTERS/Nick Oxford/File Photo Purchase Licensing Rights