Shorouk Express
BAKU, Azerbaijan, March 7. The U.S. natural gas
drilling sector has seen a significant decline in rig activity over
the past two years, with a 32% drop in natural gas-directed rigs
between December 2022 and December 2024, Trend reports.
According to the U.S. Energy Information Administration (EIA),
the decrease, particularly in the Haynesville and Appalachia
regions, coincides with record-low natural gas prices throughout
2024 and the increased use of advanced drilling technologies.
In the Haynesville region, which spans Texas and Louisiana, rig
counts have fallen by 55% since December 2022 due to higher
drilling costs and lower natural gas prices. As a result, marketed
natural gas production in the region has decreased by 7%.
Similarly, the Appalachia region has seen a 37% reduction in rig
activity, limiting production growth to just 4% over the same
period.
The decline in drilling is linked to the sharp drop in natural
gas prices, with the U.S. benchmark Henry Hub price falling from a
14-year high of $6.95 per MMBtu in 2022 to $0.43 per MMBtu in 2024.
This price reduction has made drilling less economical,
particularly in higher-cost regions like Haynesville.
