On Friday, Baker Hughes Company (NASDAQ:BKR) reportedly stated that U.S. energy firms reduced the number of oil and natural gas rigs for the second consecutive week, marking the first such decline since late June.
The oil and gas rig count decreased by one to 585 for the week ending August 23, bringing the total count down 47 rigs, or 7%, below the same period last year, reported Reuters.
The oil rigs remained steady at 483, while gas rigs fell by one to 97 this week. The rig count dropped about 20% in 2023 following significant increases in 2021 and 2022, due to lower oil and gas prices, rising costs, and a focus on debt reduction and shareholder returns.
As per the report, U.S. oil futures have risen about 5% in 2024 after a drop of 11% in 2023, whereas U.S. gas futures are down about 19% in 2024 following a 44% plunge in 2023.
Read: Oil Prices Eye Fourth Straight Day Of Gains As Geopolitical Risks Overshadow OPEC's Cooler Demand Forecast
The rise in oil prices is expected to drive U.S. crude output up from a record 12.9 million barrels per day (bpd) in 2023 to 13.2 million bpd in 2024 and 13.7 million bpd in 2025, per the latest EIA outlook.
Conversely, gas producers cut back on drilling earlier this year after prices fell to 31⁄2-year lows in February and March.
Also Read: These Analysts Boost Their Forecasts On Baker Hughes After Strong Q2 Results
Investors can gain exposure to BKR via VanEck Oil Services ETF (NYSE:OIH) and IShares U.S. Oil Equipment & Services ETF (NYSE:IEZ).
Price Action: BKR shares are up 1.33% at $35.69 at the last check Monday.
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