U.S. Sheds One Natural Gas Rig to Slow Overall Drilling Activity

By Chris Newman

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Published in: Daily Gas Price Index Filed under:

The U.S. natural gas rig count fell by one unit to 94 for the week ending Friday (Sept. 6), according to data from Enverus and Baker Hughes Co. (BKR).

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Gas-directed units accounted for the entire one-rig decline for the U.S. oil patch, with the combined tally down to 582 for the period. The total count was down 50 from a year earlier, with gas rigs 19 lower, according to the latest numbers.

Total horizontal rigs in the United States fell by one rig week/week to 520. Vertical rigs were unchanged at 14. Directional units were flat at 48. By location, the land drilling count shed one unit to finish the week at 562. Rigs in inland waters and offshore were flat.

Wood Mackenzie data Friday showed the seven-day U.S. natural gas production average at 101.4 Bcf/d, roughly in line with the 30-day average. It projected Lower 48 output would average 101.3 Bcf/d in the week ahead. Production ramped up in the summer and reached a five-month high above 103 Bcf/d in late July. However, the trend reversed in August amid more output curtailments and pipeline maintenance.

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The Canadian rig count, meanwhile, was flat to end the Sept. 6 period at 220 as an additional miscellaneous rig offset a one-unit drop in oil-directed activity.

Canada’s total rigs were up from 182 a year earlier, with all of the gain from oil rigs. Gas-directed rigs at 67 in the week were down by two units from a year earlier. The lower year/year count for gas rigs comes amid lower pricing and stout inventories. Canadian gas producers have reduced output this year after it approached record levels above 18 Bcf/d.

Looking at Lower 48 plays, the Permian Basin added one rig to put it at 306, while the Denver-Julesburg/Niobrara formation shed one rig to finish at eight units.

By state, West Virginia added two rigs to put it at eight, while New Mexico added one rig to finish at 106. Meanwhile, Pennsylvania shed two rigs, and Colorado and Oklahoma each shed one rig.

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Chris Newman

Chris Newman joined NGI in October 2023. He worked 18 years at Argus Media, starting in 2004 in Washington, D.C., where he covered U.S. thermal/coking coal markets and rail transportation. In 2014, he moved to Singapore to help lead Argus’ coverage of steel and its raw material feedstocks. A graduate of the University of Virginia, Chris returned to his native Virginia in 2021.