Baker Hughes reports that US drillers have added oil and gas rigs to their fleet for the first time in 3 weeks.

Energy services firm Baker Hughes said that U.S. firms added oil and gas rigs this week for the first time in 3 weeks.

The number of oil and gas rigs, a good indicator of future production, increased by three in the week ending December 23.

Baker Hughes has released its rig count report several days earlier than usual due to the Christmas Day holidays.

Baker Hughes reported that despite this week's increase in rigs, the total count is still down by 44 rigs since?this time last. This represents a 7.5% decline.

Baker Hughes reported that the number of oil drilling rigs rose by three this week to 409, while gas drilling rigs remained unchanged at 127.

Oil and gas rig counts declined by around 5% in 2024, and 20% in '2023, due to lower U.S. oil and gas prices in the last couple of years. Energy firms focused more on increasing shareholder returns and paying off debt than increasing production. Analysts predicted that U.S. crude spot prices would fall for the third consecutive year in 2025. However, the U.S. Energy Information Administration forecast crude production would increase from a record 13,2 million barrels a day (bpd), in 2024, to around 13.6 million bpd by 2025.

EIA predicted that, on the gas side of the equation, a '63% increase in spot gas prices by 2025 would encourage producers to boost their drilling activity in this year. A '14% drop in price in 2024 had caused several energy companies to cut production for the first since the COVID-19 Pandemic reduced the demand for fuel in -2020. EIA predicted that gas production would increase to 107.7 bcfd by 2025. This is up from the 103.2 bcfd of 2024, and the record 103.6 bcfd of 2023. Reporting by Scott DiSavino, New York; Sarah Qureshi, Bengaluru. Editing by Paul Simao.

(source: Reuters)