Oil services company Baker Hughes has reported a decrease in the number of U.S. oil rigs by 2, bringing the total to 480 rigs, which is 24 fewer than the previous year. Meanwhile, natural gas rigs increased by 2, reaching a total of 101, which is 16 fewer than the same period last year.
The U.S. Energy Information Administration (EIA) has attributed the decline in natural gas rigs, particularly in the Haynesville region between Texas and Louisiana, to the drop in Henry Hub prices over the past two years. According to an EIA report, producers tend to adjust the number of operating rigs in response to fluctuations in natural gas prices. The report noted that as gas prices decrease, the profitability of extracting gas from dry gas formations diminishes, leading producers to halt production and abandon rigs.
