The US natural gas rig count fell to a nearly 18-year low Friday, as Baker Hughes reported there were 354 gas rigs for the week ending Friday, down 12 from the prior week.
The last time the gas rig count was this low was June 16, 1995, when it was 340, according to Baker Hughes data. This also is the third consecutive week of declines in the gas rig count.
The overall US oil and gas rotary rig count, however, rose by 10 to 1,764 from the previous week, but is down by 201 rigs from 1,965 in the corresponding week of the previous year, Baker Hughes said.
"It is interesting to note that the gas rigs have continued to drop these past few weeks even as NYMEX has seen some of the highest prices of the year," a bank's analyst said. "What this speaks to is the continued efficiencies the industry is seeing in drilling and completion -- effectively, how you can get more with less."
Other market sources echoed that sentiment, noting that despite the falling gas rig count, overall gas production has rebounded, as reflected in the Energy Information Administration's monthly production report released Tuesday. Production in the US Lower-48 states in February, the most recent data available, rose to 73.22 Bcf/d, up 1.3%, or 920,000 Mcf/d, from January, the EIA said.
Texas saw the largest drop in the number of gas rigs, reporting 831 for the week ending Friday, compared to 834 in the prior week. This also constitutes a drop of 102 rigs from the year-ago level of 933. In contrast, Alaska saw the largest gain as its count moved up five from the prior week to eight, compared to the year-ago level of three.
The oil rig count rose 22 to 1,403, while miscellaneous rigs were unchanged at seven. Canada's count fell by one rig from last week to 121, down 10 from last year's 131, according to Baker Hughes.
