Media doesn't understand that the rig count is no longer a good indicator
Here is a good example. The article emphasizes the rig count and the announced reductions in expenditures but then totally seems to miss the fact that projections of production are for increases in 2025. In the age of long lateral horizontal wells, the rig count is no longer the leading indicator that it was before.
US drillers cut oil/gas rigs for 7th week to lowest since 2021, Baker Hughes says
By Scott Disavino reuters.com
June 13 (Reuters) - U.S. energy firms this week cut the number of oil and natural gas rigs operating for a seventh week in a row to the lowest since November 2021, energy services firm Baker Hughes (BKR.O) said in its closely followed report on Friday.
Baker Hughes said this week's decline puts the total count down by 35 rigs or 6% below this time last year.
The oil rig count fell by three to 439 this week, its lowest since October 2021, while gas rigs slipped by one to 113.
Total rig counts in the Permian in West Texas and eastern New Mexico, and in the state of Texas fell this week to their lowest levels since November 2021.
In New Mexico, meanwhile, the rig count fell this week to its lowest since December 2021.
The oil and gas rig count declined by about 5% in 2024 and 20% in 2023 as lower U.S. oil and gas prices over the past couple of years prompted energy firms to focus more on boosting shareholder returns and paying down debt rather than increasing output.
The independent exploration and production (E&P) companies tracked by U.S. financial services firm TD Cowen said they planned to cut capital expenditures by around 3% in 2025 from levels seen in 2024.
That compares with roughly flat year-over-year spending in 2024, and increases of 27% in 2023, 40% in 2022 and 4% in 2021.
Even though analysts forecast U.S. spot crude prices would decline for a third year in a row in 2025, the U.S. Energy Information Administration (EIA) projected crude output would rise from a record 13.2 million barrels per day (bpd) in 2024 to around 13.4 million bpd in 2025.
On the gas side, the EIA projected an 84% increase in spot gas prices in 2025 would prompt producers to boost drilling activity this year after a 14% price drop in 2024 caused several energy firms to cut output for the first time since the COVID-19 pandemic reduced demand for the fuel in 2020.
The EIA projected gas output would rise to 105.9 billion cubic feet per day (bcfd) in 2025, up from 103.2 bcfd in 2024 and a record 103.6 bcfd in 2023.
Views: 53
Replies to This Discussion
-
Permalink Reply by Skip Peel - Mineral Consultant
-
Here is why.
SALEM, Ohio — A drilling crew for Expand Energy Corporation has set several new national records while working on the BW Edge MSH 210H well in Marshall County, West Virginia.
According to the company, Rig EDC 41 drilled the longest lateral (horizontal) section in U.S. history, at 27,657 feet or 5.2 miles. The well also boasts the title of the longest total well in U.S. land drilling at 34,507 feet, or 6.5 miles, through the Marcellus shale.
The crew also achieved the longest single-bit run in U.S. land, at 30,368 feet and the 48-hour footage world record of 21,314 feet. Expand Energy’s 24-hour and daily footage records were also broken during construction.
The ultra-long well allows Expand Energy to tap into more underground resources from fewer surface locations, reducing environmental impact while lowering costs and boosting efficiency, which suits the environmental constraints of remote Appalachia, according to Sebastian Ziaja, senior drilling engineer for Expand Energy.
“This kind of performance only happens through months of preparation and teamwork,” Ziaja said in a press release. “From design to execution, it’s a true group effort.”
Expand Energy, formed through the combination of Chesapeake Energy Corporation and Southwestern Energy Company in 2024, is the largest natural gas producer in the U.S.
In March, Expand Energy landed a 5.6-mile hole in northern West Virginia’s Marcellus Shale.
The state has been host to record-smashing laterals in the past, with the longest lateral section drilled in a North American oil and gas shale well previously reaching 24,166 feet in Lewis County, West Virginia, in 2023, according to the service firm Tenaris.
The records set by the Marshall County well were confirmed by independent industry organizations, ensuring accuracy and credibility.
v
Support GoHaynesvilleShale.com
Top Content
Blog Posts
Tuscaloosa Trend Sits On Top Of Poorest Neighbourhood For Decades - Yet No Royalties Ever Paid To The Community -- Why??
In researching the decades-old Tuscaloosa Trend and the immense wealth it has generated for many, I find it deeply troubling that this resource-rich formation runs directly beneath one of the poorest communities in North Baton Rouge—near Southern University, Louisiana—yet neither the university ( that I am aware of) nor local residents appear to have received any compensation for the minerals extracted from their land.
This area has suffered immense environmental degradation…
ContinuePosted by Char on May 29, 2025 at 14:42
Not a member? Get our email.
Groups
-
Bienville Parish, LA
246 members
-
North Caddo Parish
359 members
-
Cass County, TX
121 members
-
Nacogdoches County
193 members
-
Claiborne Parish
146 members
-
Natchitoches Parish
400 members
-
Rapides Parish
101 members
-
Fayetteville Shale
150 members
-
Harrison County
166 members
-
Franklin County, Texas
9 members
© 2025 Created by Keith Mauck (Site Publisher).
Powered by
