U.S. Rig Count Resumes Decline, Dropping for Fifth Week in Six
U.S. energy firms reduced the number of oil and natural gas rigs this...
U.S. energy firms reduced the number of oil and natural gas rigs this week, reversing last week's brief uptick, according to Baker Hughes' latest report on Friday. The rig count, a leading indicator of future output, fell by two to a total of 588 in the week ending September 20, continuing the downward trend seen in five of the past six weeks.
This drop leaves the total rig count 42 rigs, or 7%, lower than the same time last year. While the number of oil rigs remained unchanged at 488, gas rigs fell by one to 96.
The rig count had declined by about 20% in 2023 after sharp increases of 33% in 2022 and 67% in 2021. This was driven by falling oil and gas prices, rising inflation-related costs, and a shift in corporate priorities toward debt reduction and shareholder returns over production growth.
In 2024, U.S. oil futures have risen around 0.6%, following an 11% drop in 2023, while gas futures are down 4% so far this year after plunging 44% in 2023.
Toby Rice, CEO of EQT, the largest U.S. gas producer, expects natural gas prices to remain below $3 per million British thermal units (MMBtu) in the near term. EQT, along with other shale gas producers, had cut production earlier in the year due to multi-year low prices but expects output curtailments to ease in 2024 as demand for liquefied natural gas (LNG) exports rises.
Republican governors unite for "continued energy choice"
A group of 10 Republican...
A group of 10 Republican governors, including Virginia's Glenn Youngkin and Oklahoma's Kevin Stitt, has launched the Governors Coalition for Energy Choice to push back against clean energy mandates and advocate for fewer regulations on traditional energy sources. The coalition's objectives are to "ensure continued energy choice, minimize permitting and other regulatory barriers, limit expensive energy mandates, focus on affordability and reliability of energy infrastructure, and coordinate to positively manage energy resources and the environment."
US refiners cut fall maintenance plans to 3-year low
US refiners plan to idle...
US refiners plan to idle only around 529,000 barrels per day of crude-processing capacity for maintenance this fall, roughly half the volume taken offline last year, marking the lightest fall turnaround season since 2021, according to IIR Energy. While the reduced downtime may help alleviate crude oversupply concerns, it could further tighten already narrow refining margins.
Israel strikes Beirut as tensions rise. Israel’s...
Israel strikes Beirut as tensions rise. Israel’s airstrike on the Lebanese capital killed top Hezbollah commander Ibrahim Akil and 10 other Hezbollah operatives. Akil had been sanctioned by the US for his role in 1983 terrorist attacks that killed more than 300 people at a US embassy and Marine barracks. Lebanon said Israel’s attack yesterday killed at least 14 people and wounded dozens. The attack follows the deadly detonation of pagers and walkie-talkies used by Hezbollah, for which the militant group vowed to retaliate against Israel. The escalation continues to raise the prospect of a regional war breaking out.
OpenAI has so many interested investors it’ll have to turn some away from an expected $6.5 billion funding round that values the company at $150 billion.
Disney employees will have to stop using Slack in the wake of a hack that leaked the company’s chat logs.
The Secret Service has acknowledged failures that led to the attempted assassination of Donald Trump at a Pennsylvania rally in July.
A sheriff in rural Kentucky was charged with the murder of a local judge who was fatally shot in his chambers.
Political reporter Olivia Nuzzi has been put on leave by New York Magazine after disclosing an “emotional and digital” relationship with former independent presidential candidate RFK Jr.
Oil ends week higher as investors take stock of Fed rate cut
Oil prices settled lower on Friday but recorded a second straight week...
Oil prices settled lower on Friday but recorded a second straight week of gains, garnering support from a U.S. interest rate cut and a dip in U.S. supply.
Brent futures settled down 39 cents, or 0.52%, at $74.49 a barrel. U.S. WTI crude futures settled down 3 cents, or 0.4%, to $71.92.
Signs of a slowing economy in major commodity consumer China gave prices a ceiling. However, both benchmarks settled up more than 4% for the week.
Prices have recovered after Brent fell below $69 for the first time in nearly three years on Sept. 10.
