U.S. energy firms added oil and natural gas rigs for a fourth consecutive week, pushing the total rig count to its highest level since June, according to energy services firm Baker Hughes in its closely watched report on Friday.
The total oil and gas rig count, an early indicator of future output, rose by four to 592 in the week ending February 21. However, despite the recent gains, the count remains 34 rigs, or 5%, lower than the same period last year.
Oil rigs increased by seven to 488 this week, reaching their highest level since September, while gas rigs declined by two to 99.
Drillers expanded operations in Oklahoma, adding five rigs for a total of 49—the highest count since May 2023. In West Virginia, one additional rig brought the total to 11, the highest since August 2023.
The oil and gas rig count had declined by about 5% in 2024 and 20% in 2023, as lower U.S. oil and gas prices over the past two years led energy firms to prioritize shareholder returns and debt reduction over expanding output.
Despite analysts forecasting stable U.S. spot crude prices in 2025, the U.S. Energy Information Administration (EIA) projects that crude production will rise from a record 13.2 million barrels per day (bpd) in 2024 to approximately 13.6 million bpd in 2025.
On the natural gas front, the EIA predicts a 73% surge in spot gas prices in 2025, which could encourage producers to ramp up drilling activity after a 14% price decline in 2024 led several firms to scale back production—the first such cutback since the COVID-19 pandemic slashed demand in 2020.
The EIA expects U.S. gas output to increase to 104.6 billion cubic feet per day (bcfd) in 2025, up from 103.1 bcfd in 2024 and surpassing the previous record of 103.6 bcfd set in 2023.