US Baker Hughes Total Rig Count Actual 578 (Forecast -, Previous 584)

US Baker Hughes Total Rig Count Actual 578 (Forecast -, Previous 584)

U.S. energy firms have cut the number of oil and gas rigs operating for the first time in three weeks, according to a report by Baker Hughes Co. (BKR.O) on May 2. The oil and gas rig count fell by three to 584, marking a 21-rig decrease or 3% below the count at this time last year [1].

The decline was driven by a drop in oil rigs by four to 479, while gas rigs increased by two to 101. This decrease in the rig count follows a trend of reduced drilling activity in 2024 and 2023, as lower U.S. oil and gas prices prompted energy firms to focus more on shareholder returns and debt reduction rather than increasing output [1].

The oil and gas rig count has declined by about 5% in 2024 and 20% in 2023. Crude prices have slumped 20% to COVID-19 pandemic lows since the beginning of U.S. President Donald Trump's second term, raising questions about producers' ability to meet dividend and share repurchase goals or cut capital expenditure budgets [1].

Exxon Mobil (XOM.N) reiterated its 2025 spending guidance of $27 billion to $29 billion, despite pressure to cut expenditures and return more money to shareholders. Chevron (CVX.N) maintained its dividend and share buyback strategy, growing output from the Permian basin by 12% year-over-year in the first quarter [1].

The current total rig count stands at 578, with a forecast of - (no forecast provided) and a previous count of 584.

References:
[1] https://www.reuters.com/business/energy/us-drillers-cut-oil-gas-rigs-first-time-three-weeks-baker-hughes-says-2025-05-02/