U.S. Oil and Gas Rig Count Rises to 592, Highest Since June

U.S. energy firms have increased oil and natural gas rigs for the fourth consecutive week, reaching a total of 592 rigs, the highest count since June, according to Baker Hughes. The increase included seven additional oil rigs, bringing the total to 488, while gas rigs decreased by two to 99. Despite this uptick, the total rig count remains 5% lower than the same time last year, reflecting a broader trend of reduced drilling activity due to past low oil and gas prices. The U.S. Energy Information Administration (EIA) forecasts that crude oil production will rise from 13.2 million barrels per day in 2024 to approximately 13.6 million in 2025. Additionally, the EIA predicts a significant increase in gas production, aiming for 104.6 billion cubic feet per day by 2025, driven by anticipated higher spot gas prices. Analysts suggest that these changes may lead to a revival in drilling activity after previous output cuts prompted by market fluctuations.