US rig count lower as offshore drilling decreases: Baker Hughes
Quantum Commodity Intelligence – North American drilling activity eased last week with oil rigs leading the losses, including a rare change in offshore activity, according to the latest report from oilfield services firm Baker Hughes.
The total rig count decreased by six rigs to 613 in the week ending 26 April, leaving the count 142 rigs below the same stage last year and down nine from the 622 units at the start of 2024.
Rigs drilling for oil dropped by five to 506 units, which is 85 fewer than at the same stage last year. Rigs drilling exclusively for gas were down one at 105, a figure 56 fewer than year-ago levels with drillers cutting a third of gas rigs over the past 12 months.
Texas, the largest-producing state, added one unit to stand at 297, while Colorado, New Mexico and Pennsylvania lost one rig each.
Louisiana, which has both onshore and offshore production, was down four rigs to 36. Baker Hughes noted rigs operating in the Gulf of Mexico declined by three on the week, leaving just 15 active drilling units in the GoM.
The Permian Basin, spanning West Texas and New Mexico, eased by one rig, while Marcellus, DJ-Niobara and Granite Wash were also down a single unit.
Prices
Crude oil prices were slightly higher on a mix of solid fundamentals and geopolitical risk. NYMEX WTI trading on the Chicago Mercantile Exchange closed Friday at $83.85/b for the Jun24 contract, a gain of 2% on the week.
Front-month Jun24 ICE Brent futures settled at $89.50/b, up 2.5% over the same timeframe.
Natural gas was again under pressure as sluggish demand dovetailed with elevated stock levels and reduced LNG exports following persistent problems at the Freeport LNG terminal.
The May24 Henry Hub contract on NYMEX ended the week 8% lower at $1.61/mmBtu, while The Jun24 contract dipped to $1.93/mmBtu, sliding below the key psychological support level of $2/mmBtu.
Meanwhile, spot prices at the Waha hub where Permian gas is priced slumped after a fire closed part of Kinder Morgan's Natural Gas Pipeline of America. Physical gas was reportedly offloaded at minus $3/b on Friday with producers forced to pay lifters to take more gas at other locations or face production shut-ins.
