U.S. energy firms this week added rigs for a seventh week in a row for the first time since May 2022, energy services firm Baker Hughes said in its closely followed report on Friday.
The oil and natural gas rig count, an early indicator of future output, rose by one to 563 in the week to June 5, its highest since May 2025.
With this week’s rig increase, Baker Hughes said the total count was up four rigs, or 1% above this time last year.
Baker Hughes said oil rigs rose by two to 431 this week, the highest since June 2025, while gas rigs fell by one to 124, the lowest since January 2026. Other miscellaneous rigs held at eight.
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.
Now, spot U.S. West Texas Intermediate (WTI) crude prices are 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 rise from a record 13.6 million barrels per day (bpd) in 2025 to 13.7 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 110.6 bcfd in 2026, even though spot prices at the U.S. Henry Hub benchmark in Louisiana were expected to ease by about 1% in 2026.
(Reporting by Scott DiSavino; Editing by David Gregorio)