Core Insights - U.S. energy firms have added oil and natural gas rigs for the second consecutive week, marking the first such increase since early February, according to Baker Hughes [1] - The total oil and gas rig count rose by two to 553, the highest level since November 2025, although it remains down 39 rigs or 7% compared to the same time last year [1] Rig Count Details - Oil rigs increased by one to 412, the highest since early February, while gas rigs also rose by one to 133, the highest since late February [1] - The oil and gas rig count has seen a decline of approximately 7% in 2025, 5% in 2024, and 20% in 2023 due to lower U.S. oil prices, leading firms to prioritize shareholder returns and debt repayment over output increases [1] Capital Expenditure Trends - Financial services firm TD Cowen reported that all 18 exploration and production companies it tracks plan to reduce capital expenditures by about 1% in 2026 compared to 2025, following a decline of around 4% in 2025 [1] - This trend contrasts with increases of 27% in 2023, 40% in 2022, and 4% in 2021, indicating a shift in spending priorities within the industry [1] Future Production Projections - The U.S. Energy Information Administration (EIA) projects that crude output will rise from a record 13.59 million barrels per day (bpd) in 2025 to 13.61 million bpd in 2026, driven by expected increases in West Texas Intermediate (WTI) crude prices due to geopolitical factors [1] - On the natural gas side, EIA forecasts output to increase from a record 107.7 billion cubic feet per day (bcfd) in 2025 to 109.5 bcfd in 2026, with spot prices at the U.S. Henry Hub expected to rise by about 7% in 2026 [1]