(Reuters) – U.S. energy firms this week added oil and natural gas rigs for a sixth straight week, for the first time since May 2022, energy services firm Baker Hughes said in its closely followed report on Friday.
The oil and gas rig count, an early indicator of future output, rose by four to 562 in the week to May 29, its highest since May 2025.
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Despite this week’s rig increase, Baker Hughes said the total count was still down one rig from this time last year.
Baker Hughes said oil rigs rose by four to 429 this week, their highest since June 2025, while gas rigs held steady at 125 and other miscellaneous rigs held steady at eight.
The oil and gas rig count declined by 7% in 2025, 5% in 2024, and 20% in 2023 as lower U.S. oil prices prompted energy firms to focus more on boosting shareholder returns and paying down debt rather than increasing output. But with spot U.S. West Texas Intermediate crude prices expected to rise in 2026 due to the Iran war after declining in 2023, 2024, and 2025, the U.S. Energy Information Administration projected crude output would rise from a record 13.6 million barrels per day in 2025 to 13.7 million bpd in 2026. On the gas side, the EIA projected output would rise from a record 107.7 billion cubic feet per day in 2025 to 110.6 bcfd in 2026, even though spot prices at the U.S. Henry Hub benchmark in Louisiana were expected to ease by about 1% in 2026.
Reporting by Scott DiSavino; Editing by Rod Nickel
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