SEATTLE (Oil Monster): Baker Hughes Company reported that a total of 118 natural gas-directed rigs were active in the U.S. as of October 20th. The count of active rigs recorded decline by 38 since the start of the current year. The decline in number of active drilling rigs coincides with reduced natural gas prices in 2023, compared with the year before.
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The U.S. benchmark Henry Hub averaged at $6.45 per MMBtu in 2022. The Henry Hub price had peaked in August, after which it started falling. The prices remained relatively high until the end of the year. Starting January this year, the prices began to show modest decline. The average price continued to decline throughout the year, falling to almost $4.00 per MMBtu during the initial ten-month period of 2023.
In line with prices, the number of active U.S. natural gas-directed rigs too has recorded decline. The number of active rigs remained in a range of between 150 and 162 during the initial four-month period of the year. The count, which recorded steady decline afterwards, hit a bottom of 113 on 8th September.
Also, the oil-directed rig count in the Permian region dropped significantly from 357 in May to 305 in October. The dip in count corresponds to decline in West Texas intermediate crude oil price.
