The Number of Active Oil and Gas Drilling Rigs in the United States Recorded the Largest monthly Increase in July 2024 since November 2022

According to foreign reports on July 26th, US energy service company Baker Hughes stated in its closely watched report on Friday that active oil and gas drilling rigs by US energy companies have increased for the second consecutive week, making the monthly increase in active drilling rig numbers the largest since November 2022.

Data shows that as of the week ending July 26th, the leading indicator of future production, the total number of oil and gas drilling rigs in the United States, increased by 3 to 589.

Baker Hughes stated that despite the increase in quantity this week, the total number of drilling rigs still decreased by 75, or 11%, compared to the same period last year

Baker Hughes announced that the number of oil drilling rigs increased by 5 this week to 482; The number of natural gas drilling rigs has decreased by 2 to 101.

In July, the total number of oil and gas drilling rigs increased by 8, marking the first monthly increase since February and the largest monthly increase since November 2022.

This month, the number of oil drilling rigs increased by 3, marking the first month of increase since March; The number of natural gas drilling rigs has risen by 4, marking the largest monthly increase since July 2023.

In the first half of this year, the number of oil and gas drilling rigs decreased by nearly 7%, continuing the decline of about 20% in 2023, due to the decline in crude oil and gas prices, soaring inflation leading to increased labor and equipment costs, and companies focusing on debt repayment and improving shareholder returns rather than increasing production. The number of oil and gas drilling rigs in the United States increased by 33% and 67% in 2022 and 2021, respectively.

So far this year, US crude oil futures have risen by about 8%, with a decline of 11% in 2023; The price of natural gas futures in the United States has fallen by about 20%, with a significant drop of 44% in 2023.

Baker Hughes announced on Thursday that its second quarter profit exceeded analysts' estimates, boosted by increased international market demand. Its competitors SLB and Halliburton also announced profits.