US oil and gas rig count rises to highest since June, Baker Hughes says

Group 1 - U.S. energy firms have added oil and natural gas rigs for four consecutive weeks, marking the first such increase since February, with the total rig count rising to 549, the highest since June [1] - The oil rig count increased by six to 424, the highest level since July, while the gas rig count decreased by one to 117, the lowest since July [1] - The oil and gas rig count is projected to decline by about 5% in 2024 and 20% in 2023 due to lower U.S. oil and gas prices, leading firms to prioritize shareholder returns and debt repayment over output increases [2] Group 2 - Capital expenditures for independent exploration and production companies are expected to decrease by around 4% in 2025 compared to 2024, following a period of increased spending in previous years [2] - Despite forecasts of declining U.S. spot crude prices for a third consecutive year in 2025, crude output is projected to rise from 13.2 million barrels per day in 2024 to approximately 13.4 million barrels per day in 2025 [3] - The EIA anticipates a 61% increase in spot gas prices in 2025, which is expected to encourage producers to increase drilling activity after a 14% price drop in 2024 led to output cuts [4]