HOUSTON -(Dow Jones)- The number of rigs drilling for oil and natural gas in the U.S. rose this week as producers put some rigs back to work in anticipation of higher prices.
The number of oil and gas rigs rose to 1,024, up seven rigs from the previous week, according to data from oil-field services company Baker Hughes Inc. (BHI). The number of gas rigs was 712, an increase of two rigs from last week, while the oil rig count was 303, an increase of six rigs. The number of miscellaneous rigs fell by one rig to nine.
The number of gas rigs in use peaked at 1,606 in September 2008. Producers have reined in natural-gas drilling dramatically over the past several months in response to declining prices, but the gas rig count has begun to stabilize as producers bet on a price recovery. Natural gas prices have fallen by more than 65% from their summer 2008 highs above $13 a million British thermal units. Gas supplies, however, have remained abundant. Some analysts expect that storage facilities will approach full capacity - an estimated 3.9 trillion cubic feet - before winter heating season begins. Total gas in U.S. storage for the week ended Sept. 25 stood at an all-time high of 3.589 trillion cubic feet - above record Oct. 2007 storage levels of 3.565 trillion cubic feet.
Natural gas for November delivery on the New York Mercantile Exchange was recently up 17.5 cents, or 3.92%, at $4.641 a million British thermal units.
-By Jason Womack, Dow Jones Newswires; 713-547-9201; jason.womack@dowjones.com