U.S. energy firms this week added oil and gas rigs for a second week in a row, energy services firm Baker Hughes said on Tuesday.
The oil and gas rig count, an early indicator of future output, rose by one to 546 in the week to December 30, its highest since December 12.
Baker Hughes released the rig count report a few days early due to the New Year’s Day holiday.
Despite this week’s rig increase, Baker Hughes said the total count was still down 43 rigs, or 7.3% below this time last year. Baker Hughes said oil rigs rose by three to 412 this week, their highest since Dec. 12, while gas rigs fell by two to 125, their lowest since Nov. 14.
The oil and gas rig count declined by about 5% in 2024 and 20% in 2023, as lower U.S. oil and gas prices over the past couple of years prompted energy firms to focus more on boosting shareholder returns and paying down debt rather than increasing output. Even though analysts forecast U.S. spot crude prices would decline for a third year in a row in 2025, the U.S. Energy Information Administration projected crude output would rise from a record 13.2 million barrels per day (bpd) in 2024 to around 13.6 million bpd in 2025.
On the gas side, EIA projected that U.S. output and demand will both rise to record highs in 2025. EIA projected dry gas production will rise from 103.2 billion cubic feet per day in 2024 to 107.7 bcfd in 2025 and 109.1 bcfd in 2026. That compares with a record 103.6 bcfd in 2023.
(Reporting by Anjana Anil in Bengaluru, Editing by Nick Zieminski)