(Reuters) – U.S. energy firms this week added oil and natural gas rigs for a second week in a row for the first time since February, 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 two to 587 in the week to April 25.
Despite this week’s rig increase, Baker Hughes said the total count was still down 26, or 4% below this time last year.
Baker Hughes said oil rigs rose by two to 483 this week, while gas rigs increased by one to 99.
In April, drillers cut the number of rigs operating by five, putting the total count down for a second month in a row with oil rigs down by one and gas rigs off by four.
The oil and gas rig count declined by about 5% in 2024 and 20% in 2023 as lower U.S. oil and gas prices over the past couple of years prompted energy firms to focus more on boosting shareholder returns and paying down debt rather than increasing output.
Some small U.S. shale producers are putting the brakes on oil drilling as crude prices sink to multi-year lows and steep tariffs drive construction costs higher.
Baker Hughes and rival Halliburton warned in earnings this week of the hit to their revenues from less drilling and from tariffs.
Oil and gas producer spending in the U.S. and Canada is set for a low double-digit decline, Baker Hughes said on Thursday, compared with a previous forecast for a drop in the mid-single digits.
Reporting by Scott DiSavino Editing by Marguerita Choy
Share This:
More News Articles
