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Reuters
18-07-2025
- Business
- Reuters
US drillers add oil/gas rigs for first time in 12 weeks, Baker Hughes says
July 18 (Reuters) - U.S. energy firms this week added oil and natural gas rigs for the first time in 12 weeks, energy services firm Baker Hughes (BKR.O), opens new tab said in its closely followed report on Friday. The oil and gas rig count, an early indicator of future output, rose by seven, its biggest weekly increase since December, to 544 in the week to July 18. , , Despite this week's rig increase, Baker Hughes said the total count was still down 42 rigs, or 7% below this time last year. Baker Hughes said oil rigs fell by two to 422 this week, their lowest since September 2021, while gas rigs rose by nine, the biggest weekly increase since July 2023, to 117, their most since March 2024. In Texas, the biggest oil and gas-producing state, the rig count fell by two to 253, the lowest since October 2021. In the Permian basin in West Texas and eastern New Mexico, the biggest U.S. oil-producing shale formation, the rig count fell by two to 263, also the lowest since October 2021. But in the Haynesville shale in Arkansas, Louisiana and Texas, one of the nation's biggest and fastest-growing gas-producing regions, the rig count rose by three to 41, the most since March 2024. The oil and gas rig count declined by about 5% in 2024 and 20% in 2023 as lower U.S. oil and gas prices over the past couple of years prompted energy firms to focus more on boosting shareholder returns and paying down debt rather than increasing output. The independent exploration and production (E&P) companies tracked by U.S. financial services firm TD Cowen said they planned to cut capital expenditures by around 3% in 2025 from levels seen in 2024. That compares with roughly flat year-over-year spending in 2024, and increases of 27% in 2023, 40% in 2022 and 4% in 2021. Even though analysts forecast U.S. spot crude prices would decline for a third year in a row in 2025, the U.S. Energy Information Administration (EIA) projected crude output would rise from a record 13.2 million barrels per day (bpd) in 2024 to around 13.4 million bpd in 2025. On the gas side, the EIA projected a 68% increase in spot gas prices in 2025 would prompt producers to boost drilling activity this year after a 14% price drop in 2024 caused several energy firms to cut output for the first time since the COVID-19 pandemic reduced demand for the fuel in 2020. The EIA projected gas output would rise to 105.9 billion cubic feet per day (bcfd) in 2025, up from 103.2 bcfd in 2024 and a record 103.6 bcfd in 2023.
Reuters
03-07-2025
- Business
- Reuters
US drillers cut oil and gas rigs for 10th week in a row, Baker Hughes says
June 27 (Reuters) - U.S. energy firms this week cut the number of oil and natural gas rigs operating for a 10th week in a row for the first time since July 2020, energy services firm Baker Hughes (BKR.O), opens new tab said in its closely followed report on Thursday. The oil and gas rig count, an early indicator of future output, fell by eight to 539 in the week to July 3, the lowest since October 2021. , , Baker Hughes released the report a day earlier than usual on Thursday due to the U.S. July Fourth holiday on Friday. This week's decline puts the total rig count down 46 rigs, or 8% below this time last year, Baker Hughes said. Oil rigs fell by seven to 425 this week, their lowest since September 2021, while gas rigs fell by one to 108. The oil and gas rig count declined by about 5% in 2024 and 20% in 2023 as lower U.S. oil and gas prices over the past couple of years prompted energy firms to focus more on boosting shareholder returns and paying down debt rather than increasing output. Even though analysts forecast U.S. spot crude prices would decline for a third year in a row in 2025, the U.S. Energy Information Administration (EIA) projected crude output would rise from a record 13.2 million barrels per day (bpd) in 2024 to around 13.4 million bpd in 2025. On the gas side, the EIA projected an 84% increase in spot gas prices in 2025 would prompt producers to boost drilling activity this year after a 14% price drop in 2024 caused several energy firms to cut output for the first time since the COVID-19 pandemic reduced demand for the fuel in 2020. The EIA projected gas output would rise to 105.9 billion cubic feet per day (bcfd) in 2025, up from 103.2 bcfd in 2024 and a record 103.6 bcfd in 2023.
Yahoo
03-07-2025
- Business
- Yahoo
US drillers cut oil and gas rigs for 10th week in a row, Baker Hughes says
(Reuters) -U.S. energy firms this week cut the number of oil and natural gas rigs operating for a 10th week in a row for the first time since July 2020, energy services firm Baker Hughes said in its closely followed report on Thursday. The oil and gas rig count, an early indicator of future output, fell by eight to 539 in the week to July 3, the lowest since October 2021. Baker Hughes released the report a day earlier than usual on Thursday due to the U.S. July Fourth holiday on Friday. This week's decline puts the total rig count down 46 rigs, or 8% below this time last year, Baker Hughes said. Oil rigs fell by seven to 425 this week, their lowest since September 2021, while gas rigs fell by one to 108. The oil and gas rig count declined by about 5% in 2024 and 20% in 2023 as lower U.S. oil and gas prices over the past couple of years prompted energy firms to focus more on boosting shareholder returns and paying down debt rather than increasing output. Even though analysts forecast U.S. spot crude prices would decline for a third year in a row in 2025, the U.S. Energy Information Administration (EIA) projected crude output would rise from a record 13.2 million barrels per day (bpd) in 2024 to around 13.4 million bpd in 2025. On the gas side, the EIA projected an 84% increase in spot gas prices in 2025 would prompt producers to boost drilling activity this year after a 14% price drop in 2024 caused several energy firms to cut output for the first time since the COVID-19 pandemic reduced demand for the fuel in 2020. [NGAS/POLL] The EIA projected gas output would rise to 105.9 billion cubic feet per day (bcfd) in 2025, up from 103.2 bcfd in 2024 and a record 103.6 bcfd in 2023. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Zawya
26-05-2025
- Business
- Zawya
Egypt in talks to buy 40-60 LNG cargoes amid energy crunch, sources say
CAIRO/LONDON: Egypt is in talks with energy firms and trading houses to buy 40-60 cargoes of liquefied natural gas (LNG) amid a worsening energy crunch ahead of peak summer demand, three sources aware of the matter told Reuters. The country faces spending up to $3 billion at current prices to secure the LNG, squeezing government coffers already under strain to keep the lights on amid falling gas production and a cost of living crisis. President Abdel Fattah al-Sisi on Wednesday directed the government to "preemptively take whatever needs necessary to ensure stable electricity flow," according to a statement. "The government is now in talks to import at least 40 LNG cargoes and around 1 million tons of fuel oil," an industry source familiar with the matter told Reuters. "Gas was the primary focus, given the more flexible payment options available compared to fuel oil, though the latter remains under consideration if LNG prices are unfavourable," the source added. In the past two years, Egypt endured rolling blackouts as natural gas supply fell short of demand. Egypt's own gas output in February hit its lowest level in nine years. The world's most populous Arab country returned to being a net importer of gas last year, buying dozens of cargoes and abandoning plans to become a supplier to Europe as its production tumbled. Egypt's hard currency crunch has delayed payments to international oil firms, curbing exploration and slowing oil and gas output. The country could now need up to 60 LNG cargoes to cover its 2025 needs, a second trading source said, adding over the long term that could rise as high as 150 cargoes. It is in talks with Qatar, Algeria, Saudi Aramco, and major global trading houses, the sources said. Egypt's Ministry of Petroleum, Qatar Energy, Saudi Aramco and the Algerian Ministry of Energy and Mining did not immediately respond to Reuters requests for comment. Egypt has bought 1.84 million tons (mt) of LNG this year, data from S&P Global Commodity Insights shows. That's almost 75% of its total for 2024. ISRAELI GAS An additional problem has been lower supply from Israel's offshore Leviathan field which has been blamed on scheduled maintenance. That has forced Egypt to halt or reduce gas supplies to several fertilizer factories for at least 15 days. "My factory has come to a complete stop since Saturday. Others are working on partial capacity," the head of a fertilizers factory told Reuters, on the condition of anonymity. A prolonged halt could hit exports of fertilisers, a key source of foreign currency. Egypt relies heavily on imported Israeli gas, which accounts for 40-60% of its total imported supply and about 15-20% of its consumption, JODI data shows. Yet it faces the prospect of paying more for it, as two other industry sources told Reuters that Israel wants to raise its exported gas prices by 25%. Prices for Israeli gas are linked to oil prices which have fallen, while prices of LNG are linked to other benchmarks such as the Japan Korea Marker (JKM) in Asia, gas prices at the Dutch TTF gas hub in Europe, or Henry Hub in the U.S. "Israel wants higher prices, because now they are so low at about $6/mmBtu (million British thermal units) at today's Brent prices, while LNG price is closer to $14/mmBtu. Israel was satisfied when the price was around $7.50 mmBtu," one of the sources said. A spokesperson for the Israeli energy ministry told Reuters that prices in the gas sector are determined through business negotiations between companies. "The Government of Israel is not a party to this negotiation process. This is a business matter," she said. Egypt's Ministry of Petroleum did not immediately respond to a Reuters request for comment.
Yahoo
25-05-2025
- Business
- Yahoo
Egypt in talks to buy 40-60 LNG cargoes amid energy crunch, sources say
By Mohamed Ezz and Marwa Rashad CAIRO/LONDON (Reuters) -Egypt is in talks with energy firms and trading houses to buy 40-60 cargoes of liquefied natural gas (LNG) amid a worsening energy crunch ahead of peak summer demand, three sources aware of the matter told Reuters. The country faces spending up to $3 billion at current prices to secure the LNG, squeezing government coffers already under strain to keep the lights on amid falling gas production and a cost of living crisis. President Abdel Fattah al-Sisi on Wednesday directed the government to "preemptively take whatever needs necessary to ensure stable electricity flow," according to a statement. "The government is now in talks to import at least 40 LNG cargoes and around 1 million tons of fuel oil," an industry source familiar with the matter told Reuters. "Gas was the primary focus, given the more flexible payment options available compared to fuel oil, though the latter remains under consideration if LNG prices are unfavourable," the source added. In the past two years, Egypt endured rolling blackouts as natural gas supply fell short of demand. Egypt's own gas output in February hit its lowest level in nine years. The world's most populous Arab country returned to being a net importer of gas last year, buying dozens of cargoes and abandoning plans to become a supplier to Europe as its production tumbled. Egypt's hard currency crunch has delayed payments to international oil firms, curbing exploration and slowing oil and gas output. The country could now need up to 60 LNG cargoes to cover its 2025 needs, a second trading source said, adding over the long term that could rise as high as 150 cargoes. It is in talks with Qatar, Algeria, Saudi Aramco, and major global trading houses, the sources said. Egypt's Ministry of Petroleum, Qatar Energy, Saudi Aramco and the Algerian Ministry of Energy and Mining did not immediately respond to Reuters requests for comment. Egypt has bought 1.84 million tons (mt) of LNG this year, data from S&P Global Commodity Insights shows. That's almost 75% of its total for 2024. ISRAELI GAS An additional problem has been lower supply from Israel's offshore Leviathan field which has been blamed on scheduled maintenance. That has forced Egypt to halt or reduce gas supplies to several fertilizer factories for at least 15 days. "My factory has come to a complete stop since Saturday. Others are working on partial capacity," the head of a fertilizers factory told Reuters, on the condition of anonymity. A prolonged halt could hit exports of fertilisers, a key source of foreign currency. Egypt relies heavily on imported Israeli gas, which accounts for 40-60% of its total imported supply and about 15-20% of its consumption, JODI data shows. Yet it faces the prospect of paying more for it, as two other industry sources told Reuters that Israel wants to raise its exported gas prices by 25%. Prices for Israeli gas are linked to oil prices which have fallen, while prices of LNG are linked to other benchmarks such as the Japan Korea Marker (JKM) in Asia, gas prices at the Dutch TTF gas hub in Europe, or Henry Hub in the U.S. "Israel wants higher prices, because now they are so low at about $6/mmBtu (million British thermal units) at today's Brent prices, while LNG price is closer to $14/mmBtu. Israel was satisfied when the price was around $7.50 mmBtu," one of the sources said. A spokesperson for the Israeli energy ministry told Reuters that prices in the gas sector are determined through business negotiations between companies. "The Government of Israel is not a party to this negotiation process. This is a business matter," she said. Egypt's Ministry of Petroleum did not immediately respond to a Reuters request for comment.
