US drillers cut oil and gas rigs for second week in a row, Baker Hughes says

Core Viewpoint - U.S. energy firms have reduced the number of oil and natural gas rigs for the second consecutive week, marking the first such decline since mid-January, according to Baker Hughes [1]. Group 1: Rig Count Data - The oil and gas rig count fell by nine to 543 in the week ending March 27, the lowest level since January 16 [2]. - This decline represents a total reduction of 49 rigs, or 8.3%, compared to the same period last year [2]. - Oil rigs decreased by five to 409, the lowest since February 27, while gas rigs fell by four to 127, the lowest since January 30 [2]. Group 2: Future Projections - The oil and gas rig count is projected to decline by approximately 20% in 2023, 5% in 2024, and 7% in 2025, as lower U.S. oil prices lead energy firms to prioritize shareholder returns and debt repayment over increasing output [3]. - The U.S. Energy Information Administration (EIA) anticipates that crude output will rise from a record 13.59 million barrels per day (bpd) in 2025 to 13.61 million bpd in 2026, driven by expected increases in West Texas Intermediate (WTI) crude prices due to geopolitical factors [4]. - On the gas side, EIA projects output to increase from a record 107.7 billion cubic feet per day (bcfd) in 2025 to 109.5 bcfd in 2026, with spot prices at the U.S. Henry Hub benchmark expected to rise by about 7% in 2026 [5].