U.S. energy firms cut the number of oil and natural gas rigs operating for a second consecutive week, reaching the lowest level since December 2021, Baker Hughes reported on January 17, 2025. This decline signals a notable reduction in drilling activity across the United States.
The rig count is an early indicator of future oil and gas output, and its sustained decrease reflects a cautious approach by producers. This trend can influence the demand for oilfield services and equipment, impacting companies operating in the sector.
A subsequent report on January 24, 2025, confirmed a third consecutive weekly cut, further solidifying the rig count at its lowest point since December 2021. This continued reduction in active rigs highlights a challenging environment for upstream operations.
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