Fewer rigs in the U.S. despite higher prices

US energy companies continue to reduce their drilling rigs, an indicator of a strategic reorientation despite the recent recovery in oil prices.

Share:

Energy companies in the USA have decided to reduce the number of oil and gas rigs, even in the face of rising oil prices.
According to the latest report from Baker Hughes, the number of rigs in operation has fallen by two units to 586, down 8.7% on last year.
This reduction, the second in three weeks, illustrates a strategy of cost optimization in a context marked by inflationary pressures and high operating costs.
The year 2023 was marked by a 20% drop in the number of platforms, contrasting with the increases of previous years.
Despite this drop, oil prices rose by 7.1% in 2024, while natural gas prices continued to fall, dropping by 14% over the same period.
This decision to reduce capacity, despite rising prices, demonstrates the companies’ desire to focus on profitability and prudent resource management.

Advanced technologies for maximum efficiency

Despite this reduction in the number of rigs, US energy companies are managing to maintain, or even increase, their production thanks to the adoption of cutting-edge technologies.
The focus is on improving drilling and hydraulic fracturing techniques, enabling more resources to be extracted while using fewer rigs.
These advances include the drilling of longer wells, the optimization of multi-well platforms and the use of drillships capable of handling the extreme conditions of ultra-deep wells in the Gulf of Mexico. These technological innovations enable companies to maximize yields while reducing operating costs.
The exploitation of high-pressure wells could add up to 2 billion barrels to the United States’ recoverable reserves, strengthening the country’s position in the global energy market.

A fast-changing sector

The current context in the US energy market is characterized by a strategic reorientation of companies.
Rather than focusing on increasing production capacity, companies are now prioritizing debt reduction and the redistribution of capital to shareholders.
This strategy aims to strengthen balance sheets while adapting to the challenges posed by rising costs and economic uncertainty.
The outlook for the months ahead remains highly cautious.
Price volatility, combined with the need for optimized resource management, is prompting companies to review their priorities.
Future investment decisions will therefore be crucial in determining the sector’s ability to adapt and prosper in a complex economic environment.

The Central Energy Fund’s takeover of the Sapref refinery introduces major financial risks for South Africa, with the facility still offline and no clear restart strategy released so far.
PetroTal Corp. records production growth in the second quarter of 2025, improves its cash position and continues replacing key equipment at its main oil sites in Peru.
An explosion caused by a homemade explosive device in northeastern Colombia has forced Cenit, a subsidiary of Ecopetrol, to temporarily suspend operations on the strategic Caño Limón-Coveñas pipeline, crucial to the country's oil supply.
Occidental Petroleum announces a decrease in its production in the Gulf of Mexico in the second quarter, citing third-party constraints, extended maintenance, and scheduling delays.
U.S. legislation eases access to federal lands for oil production, but fluctuations in crude prices may limit concrete impacts on investment and medium-term production, according to industry experts.
Permex Petroleum Corporation has completed a US$2mn fundraising by issuing convertible debentures, aimed at strengthening its cash position, without using intermediaries, and targeting a single institutional investor.
Petróleos de Venezuela S.A. (PDVSA) recorded $17.52bn in export sales in 2024, benefiting from increased volumes due to U.S. licences granted to foreign partners, according to an internal document seen by Reuters.
The detection of zinc in Mars crude extracted off the coast of Louisiana forced the US government to draw on its strategic reserves to support Gulf Coast refineries.
Commissioning of a 1.2-million-ton hydrocracking unit at the TANECO site confirms the industrial expansion of the complex and its ability to diversify refined fuel production.
Oil stocks in the United States saw an unexpected rise of 7.1 million barrels as of July 4, defying analyst expectations of a decline, according to the U.S. Energy Information Administration (EIA).
Petro-Victory Energy announces the completion of drilling operations for the AND-5 well in the Andorinha field, Brazil, with positive reservoir results and next steps for production.
The Colombian prosecutor’s office has seized two offices belonging to the oil company Perenco in Bogotá. The company is accused of financing the United Self-Defense Forces of Colombia (AUC) in exchange for security services between 1997 and 2005.
Indonesia has signed a memorandum of understanding with the United States to increase its energy imports. This deal, involving Pertamina, aims to diversify the country's energy supply sources.
VAALCO Energy continues to operate the Baobab field by renovating its floating platform, despite modest production. This strategy aims to maintain stable profitability at low cost.
An empty reservoir exploded at a Lukoil-Perm oil facility in Russia, causing no injuries according to initial assessments pointing to a chemical reaction with oxygen as the cause of the accident.
The British Lindsey refinery has resumed fuel deliveries after reaching a temporary agreement to continue operations, while the future of this strategic site remains under insolvency proceedings.
BP and Shell intensify their commitments in Libya with new agreements aimed at revitalizing major oil field production, amid persistent instability but rising output in recent months.
The private OCP pipeline has resumed operations in Ecuador following an interruption caused by heavy rains, while the main SOTE pipeline remains shut down, continuing to impact oil exports from the South American country.
McDermott secures contract worth up to $50 million with BRAVA Energia to install subsea equipment on the Papa-Terra and Atlanta oil fields off the Brazilian coast.
A bulk carrier operated by a Greek company sailing under a Liberian flag suffered a coordinated attack involving small arms and explosive drones, prompting an Israeli military response against Yemen's Houthis.