Baker Hughes reports that US drillers added oil and gas rigs in the US for the second consecutive week.

Baker Hughes, an energy services company, said that U.S. firms added oil and natural gas rigs this week for the second consecutive week.

The oil and gas rig counts, an early indicator of future output, increased by one in the week ending December 30 to reach 546, its highest level since December 12.

Baker Hughes released its rig count report early because of the New Year's Day holidays.

Baker Hughes reported that despite a?this week rig increase?, the total number of rigs was still 7.3% lower than this time last year. Baker Hughes reported that oil rigs rose by three this week to 412, their highest level since December 12, while gas-rigs dropped?by two, to 125, the lowest level since November 14.

Oil and gas rig counts declined by about 5% and 20% respectively in 2024, 2023 and 2024 as the lower U.S. gas and oil prices in recent years led energy firms to concentrate more on increasing shareholder returns and paying off debt than on increasing output. Analysts predicted that U.S. crude spot prices would fall for the third consecutive year in '2025. However, according to the U.S. Energy Information Administration, crude production would increase from a record 13.2 million barrels a day (bpd), in 2024, to 13.6 million in 2025.

EIA predicted that the U.S.?gas output and demand would both reach record highs by 2025. EIA predicted dry gas production would?rise from 103,2 billion cubic feet per a day in 2024 up to 107.7 in 2025. This compares to a record of 103.6 bcfd for 2023.

(source: Reuters)