US energy firms this week cut the number of oil rigs by the most since September as production grows incrementally because energy firms are boosting shareholder returns and facing higher operating costs due to inflationary and supply chain pressures. The number of oil rigs, an early indicator of future output, fell seven to 598 in the week to August 5, the first weekly decline in 10 weeks, energy services firm Baker Hughes Co said in its closely followed report on Friday. Gas rigs rose four to 161, their highest since August 2019, while the combined oil and gas fell by three to 764, which puts the total rig count up 273, or 56%, over this time last year, Baker Hughes said. Even though the total rig count has climbed for a record 24 months through July, weekly increases have mostly been in the single digits and oil production is only forecast to recover to pre-pandemic record levels next year.
Published in The Express Tribune, August 7th, 2022.
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