The number of gas rigs in the U.S. fell below 100 for the first time in 30 years


Against the background of falling prices for natural gas to 17-year low, the number of rigs from gas fields in the U.S. for the first time in 30 years fell below 100, according to Bloomberg.

According to the Agency citing data by Baker Hughes Inc., in one week, the number of gas rigs decreased by five to 97. Five years ago in gas fields operated about 900 rigs.

The decline in the number of drilling, as noted by Bloomberg, will reduce gas production, which analysts have called on throughout the year, while prices fell.

“We are approaching a turning point for gas production,” Bloomberg said Thomas Saal, senior Vice President of FCStone Latin America LLC

Gas futures are down amid the completion of the heating season. The price of natural gas for delivery in April in the course of trading on the new York Mercantile exchange on March 4, fell to $1,611 per 1 million British thermal units (BTU). This is the lowest level since 27 August 1998.

Earlier, in late February, satlo known that U.S. drillers reduced the number of drilling rigs to a minimum for more than six years,

According to Baker Hughes, during the week of 14 to 20 February suspended the operation on 26 rigs, thus, their total number was reduced to 413. The last time this level was recorded in December 2009.

As noted Finsncial Times, reducing the number of drilling comes amid the latest report of the energy information Administration at the U.S. Department of energy (EIA), which showed that U.S. oil inventories surge of imports rose to a new weekly high.