U.S. energy firms cut oil and gas rigs to December 2021 low

Investing.com — U.S. energy companies have reduced the number of operating oil and rigs for the third consecutive week, reaching the lowest level since December 2021, according to a report released by energy services firm Baker Hughes (NASDAQ:) on Friday.

The oil and gas rig count, a preliminary indicator of future production, dropped by four to 576 in the week leading up to January 24. The decline this week brings the total rig count down by 45, or 7% lower than the same period last year, Baker Hughes reported.

The firm also reported that the number of oil rigs decreased by six to 472 this week, marking the lowest count since December 2021. Meanwhile, the count of gas rigs saw a slight increase, rising by one to 99.

In the Permian Basin, the largest oil-producing shale basin in the U.S. located in West Texas and eastern New Mexico, the rig count dropped by six to 298 in the week leading up to January 24. This count is the lowest since February 2022, and the six-rig decrease marks the largest weekly drop since August 2023.

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