US energy companies reduced oil and gas rigs by 2%, amid lower oil prices, inflation-driven cost increases, and debt repayment focus.

US energy companies reduced oil and gas rigs for the second time in three weeks, dropping the count by 2 to 586, an 8.7% decrease compared to the same period last year. The decline in oil and gas prices, inflation-driven increased labor and equipment costs, and companies focusing on debt repayment and shareholder returns are key factors. However, improved drilling and fracking efficiency allows US shale firms to increase production despite fewer rigs.

August 18, 2024
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