U.S. energy firms this week added oil and natural gas rigs for a fourth week in a row to the highest level since June, energy services firm Baker Hughes said in its closely followed report on Feb. 21.
The oil and gas rig count, an early indicator of future output, rose by four to 592 in the week to Feb. 21.
Despite this week's rig increase, Baker Hughes said the total count was still down 34, or 5% below this time last year.
Baker Hughes said oil rigs rose by seven to 488 this week, their highest since September, while gas rigs fell by two to 99.
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 raising output.
Even though analysts forecast U.S. spot crude prices would remain unchanged in 2025, the U.S. Energy Information Administration (EIA) projected crude output would rise from a record 13.2 MMbbl/d in 2024 to around 13.6 MMbbl/d in 2025.
On the gas side, the EIA projected a 73% increase in spot gas prices in 2025 would prompt producers to boost drilling activity this year after a 14% price drop in 2024 caused several energy firms to cut output for the first time since the COVID-19 pandemic reduced demand for the fuel in 2020.
The EIA projected gas output would rise to 104.6 Bcf/d in 2025, up from 103.1 Bcf/d in 2024 and a record 103.6 Bcf/d in 2023.
Recommended Reading
US E&Ps Could Drop Up to 100 Rigs at New Low Oil Price
2025-04-17 - Private operators are likely to let rigs go first, beginning in the Midcontinent and Powder River Basin, then the Eagle Ford, Bakken and Permian, according to J.P. Morgan Securities.
SM Energy Marries Wildcatting and Analytics in the Oil Patch
2025-04-01 - As E&P SM Energy explores in Texas and Utah, Herb Vogel’s approach is far from a Hail Mary.
EOG Ramps Gassy Dorado, Oily Utica, Slows Delaware, Eagle Ford D&C
2025-03-16 - EOG Resources will scale back on Delaware Basin and Eagle Ford drilling and completions in 2025.
E&Ps Posting Big Dean Wells at Midland’s Martin-Howard Border
2025-04-13 - Diamondback Energy, SM Energy and Occidental Petroleum are adding Dean laterals to multi-well developments south of the Dean play’s hotspot in southern Dawson County, according to Texas Railroad Commission data.
Chevron, TotalEnergies Start Oil Production from Ballymore Project in GoM
2025-04-21 - The Ballymore project is the third Gulf project to come online in the past year for Chevron Corp.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.