August 08, 2022 10:30 GMT
Baker Hughes rig count data release late on Friday showed an unexpected fall in oil rigs from 605 down to 598 but gas rigs continued to rise, up from 157 to 161.
- Both gas and oil rigs have gradually been increasing since mid 2020 and that increasing trend has been matched by a slow increase in US production of both gas and oil. Oil rigs have however been increasing at a faster rate than production, so production still lags behind the rig count despite the fall this week. Increasing costs and capital disciple have kept the pace of US production increases slower than that of the rig counts.
- The graphs below show rig counts compared to US production for both oil and gas
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