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The oil and gas rig count, an early indicator of future output, rose by one to 548 in the week to October 17.
Despite this week’s rig increase, Baker Hughes said the total count was still down 37 rigs, or 6% below this time last year.
Baker Hughes said oil rigs held steady at 418 this week, while gas rigs rose by one to 121, their highest since August.
In the Gulf of Mexico, Baker Hughes said the rig count fell by two this week to eight, the lowest since September 2021.
In Texas, the biggest oil and gas producing state, the rig count dropped by one to 237, also the lowest since September 2021.
In Wyoming, the rig count fell by one to 12, the lowest since August 2024.
In Colorado, meanwhile, the rig count rose by one to 15, the highest since April 2024.
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.
Around 20 independent exploration and production companies tracked by U.S. financial services firm TD Cowen said they planned to cut capital expenditures by around 4% in 2025 from levels seen in 2024.
That compares with roughly flat year-over-year spending in 2024, increases of 27% in 2023, 40% in 2022, and 4% in 2021. 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 in 2024 to around 13.5 million bpd in 2025.
On the gas side, EIA projected a 56% 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. EIA projected gas output would rise to 107.1 billion cubic feet per day in 2025, up from 103.2 bcfd in 2024 and a record 103.6 bcfd in 2023.
(Reporting by Scott DiSavino; Editing by Chris Reese and Nia Williams)
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