U.S. energy firms this week added oil and natural gas rigs for a third week in a row, the first three-week streak of increases since early February, 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 one to 548 in the week to May 8, its highest since early April.
Despite this week’s rig increase, Baker Hughes said the total count was still down 30 rigs, or 5% below this time last year.
Baker Hughes said oil rigs rose by two to 410 this week, their highest since mid-April, while gas rigs fell by one to 129, their lowest since late April, and other miscellaneous rigs held steady at nine.
The oil and gas rig count declined by 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.
Even though U.S. West Texas Intermediate (WTI) spot crude prices were expected to rise in 2026 due to the Iran war after declining in 2023, 2024, and 2025, the U.S. Energy Information Administration (EIA) projected crude output would slide from a record 13.6 million barrels per day (bpd) in 2025 to 13.5 million bpd in 2026.
On the gas side, EIA projected output would rise from a record 107.7 billion cubic feet per day (bcfd) in 2025 to 109.6 bcfd in 2026, with spot prices at the U.S. Henry Hub benchmark in Louisiana forecast to climb by about 4% in 2026.
(Reporting by Scott DiSavino; Editing by David Gregorio)