U.S. energy firms this week added oil and natural gas rigs for a second week in a row for the first time since December, energy services firm Baker Hughes said in its closely followed report on Friday.
The oil and gas rig count, an early indicator of future output, rose by two to 546 in the week to January 30, its highest since December.
Despite this week’s rig increase, Baker Hughes said the total count was still down 36 rigs, or 6% below this time last year.
Baker Hughes said oil rigs held steady at 411 this week, while gas rigs rose by three to 125, their highest since December, and miscellaneous rigs fell by one to 10.
The oil and gas rig count declined by about 7% in 2025, 5% in 2024, and 20% in 2023 as lower U.S. oil prices prompted energy firms to focus more on boosting shareholder returns and paying down debt rather than increasing output.
In the Gulf of Mexico, Baker Hughes said the rig count fell by one this week to seven, the lowest since September 2021.
In the Permian Shale, the nation’s biggest oil-producing shale basin, the rig count dropped by two to 242, the lowest since July 2021.
In Pennsylvania, meanwhile, the rig count rose by one to 19, the highest since August 2024.
The independent exploration and production companies tracked by financial services firm TD Cowen said they planned to keep capital expenditures flat in 2026 after cutting spending by around 4% in 2025.
That compares with roughly flat year-on-year spending in 2024, increases of 27% in 2023, 40% in 2022, and 4% in 2021.
With U.S. spot crude prices expected to fall for a fourth year in a row in 2026, the U.S. Energy Information Administration (EIA) projected crude output would ease from a record 13.61 million barrels per day (bpd) in 2025 to around 13.59 million bpd in 2026.
On the gas side, EIA projected output would rise from a record 107.4 billion cubic feet per day (bcfd) in 2025 to 108.8 bcfd in 2026 even though spot prices at the Henry Hub benchmark were forecast to ease by about 2% in 2026.
(Reporting by Scott DiSavino; Editing by Chizu Nomiyama and David Gregorio)