In its February 21 report, Baker Hughes stated that U.S. energy companies increased oil and gas rig counts for the fourth consecutive week, reaching the highest level since June 2023.
As an early indicator of future production, the total oil and gas rig count rose by 4 to 592 in the week ending February 21.
Despite the weekly increase, Baker Hughes noted that the total rig count remains 34 lower than the same period last year, reflecting a 5% year-on-year decrease.
The report detailed a rise of 7 oil rigs last week, bringing the total to 488—the highest level since September—while gas rigs fell by 2 to 99.
**Long-Term Trends and Industry Shifts**
U.S. oil and gas rig counts have declined by approximately 5% in 2024 and 20% in 2023, driven by lower energy prices in recent years. This has prompted energy firms to prioritize shareholder returns and debt reduction over production growth.
**Outlook for 2025**
While analysts expect U.S. crude oil spot prices to remain flat in 2025, the U.S. Energy Information Administration (EIA) forecasts that crude oil production will increase from a record 13.2 million barrels per day (bpd) in 2024 to approximately 13.6 million bpd in 2025.
In natural gas, the EIA predicts a 73% rise in spot prices in 2025, which is expected to encourage producers to ramp up drilling activity this year. This follows a 14% decline in natural gas prices in 2024, which led several energy companies to cut production for the first time since the COVID-19 pandemic reduced demand in 2020.
The EIA also projects that natural gas production will increase from 103.1 billion cubic feet per day (Bcf/d) in 2024 to 104.6 Bcf/d in 2025, compared to the record 103.6 Bcf/d in 2023.
*Reprinted from:《Petroleum & Equipment》December 2024 e-Journal*
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