U.S. energy companies expanded their oil and natural gas drilling operations for the fourth consecutive week, reaching the highest rig count since June, according to Baker Hughes’ latest report released Friday.
The total number of active rigs, an early indicator of future production, rose by four to 592 in the week ending February 21. However, this figure remains 34 rigs—or 5%—lower compared to the same period last year.
Baker Hughes noted that oil rigs increased by seven to 488, the highest count since September, while gas rigs decreased by two to 99. The overall rig count had declined by about 5% in 2024 and 20% in 2023 as falling U.S. oil and gas prices led energy firms to prioritize shareholder returns and debt reduction over boosting production.
Despite projections that U.S. spot crude prices will remain steady in 2025, the U.S. Energy Information Administration (EIA) forecasts crude output to increase from a record 13.2 million barrels per day (bpd) in 2024 to approximately 13.6 million bpd in 2025.
In the natural gas sector, the EIA anticipates that a projected 73% rise in spot gas prices in 2025 will encourage producers to ramp up drilling activity. This follows a 14% price drop in 2024, which led some energy firms to reduce output for the first time since the COVID-19 pandemic curbed demand in 2020.
The EIA expects gas production to grow to 104.6 billion cubic feet per day (bcfd) in 2025, up from 103.1 bcfd in 2024 and surpassing the record high of 103.6 bcfd set in 2023.
