US Energy Firms Cut Oil and Gas Rig Count to Lowest Since December 2021
Key Takeaways:
* U.S. energy firms reduced the oil and gas rig count by four to 576 in the week to January 24.
* Oil rigs fell by six to 472, the lowest since December 2021.
* Gas rigs increased by one to 99.
* In the Permian Basin, the rig count dropped by six to 298, the lowest since February 2022.
* The energy industry is prioritizing debt reduction and shareholder returns over output expansion.
* The EIA projects crude output to rise from 13.2 million bpd in 2024 to 13.6 million bpd in 2025.
* The EIA forecasts a 43% increase in spot gas prices in 2025, leading to increased drilling activity.