news/BKR/2023.03.10/U.S. oil & gas rig count falls for fourth week in a row - Baker Hughes.txt

March 10 (Reuters) - U.S. energy firms this week cut the
number of oil and natural gas rigs operating for a fourth week
in a row for the first time since July 2020, energy services
firm Baker Hughes Co said in its closely followed report
on Friday.The oil and gas rig count, an early indicator of future
output, fell by 3 to 746 in the week to March 10, the lowest
since June. <RIG-USA-BHI> <RIG-OL-USA-BHI> <RIG-GS-USA-BHI>Despite this week's rig decline, Baker Hughes said the total
count was still up 83 rigs, or 13%, over this time last year.U.S. oil rigs fell by 2 to 590 this week, also their
lowest since June, while gas rigs also fell by 1 to 153.U.S. oil futures were down about 4% so far this
year after gaining about 7% in 2022. U.S. gas futures,
meanwhile, have plunged about 45% so far this year after rising
about 20% last year.Energy traders said recent energy prices declines have
already caused several exploration and production companies to
cut back on the number of rigs they use to drill for oil and gas
for three months in a row from December-February.Some energy firms have said in recent weeks that they would
cut the number of rigs drilling for gas, especially in the
Haynsesville shale in Arkansas, Louisiana and Texas.U.S. energy advisor Tudor Pickering Holt & Co, however,
noted those gas rig declines "will take time to materialize as
operators will likely retain the rigs until current pads
complete."Despite lower rig counts seen in recent months, U.S. crude
production was still on track to rise from 11.9 million barrels
per day (bpd) in 2022 to 12.4 million bpd in 2023 and 12.6
million bpd in 2024, according to projections from the U.S.
Energy Information Administration (EIA) in March. That compares
with a record 12.3 million bpd in 2019.Those oil production forecasts for 2023 and 2024, however,
were smaller than EIA's projections in February.U.S. gas production, meanwhile, was on track to rise from a
record 98.09 billion cubic feet per day (bcfd) in 2022 to 100.67
bcfd in 2023 and 101.69 bcfd in 2024, according to federal
energy data in March.Those gas production forecasts for 2023 and 2024 were bigger
than EIA's projections in February.(Reporting by Scott DiSavino; Editing by Chizu Nomiyama)