U.S. energy firms this week added oil and natural gas rigs for a third week in a row for the first time since December 2023, energy services firm Baker Hughes said in its closely followed report on Feb. 14.

The oil and gas rig count, an early indicator of future output, rose by two to 588 in the week to February 14.

Despite this week's rig increase, Baker Hughes said the total count was still down 33 rigs, or 5% below this time last year.

Baker Hughes said oil rigs rose by one to 481 this week, while gas rigs gained one to 101.

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 paying down debt and boosting shareholder returns rather than raising output.

Top oilfield services provider SLB is restructuring certain business functions and expecting more job cuts, according to a source familiar with the matter and an internal email seen by Reuters.

The changes come as the Houston-based company has been working on a cost-savings initiative, according to the source, and is preparing for tepid growth this year as its customers are more cautious about spending amid concerns of an oversupplied oil market.

Even though analysts forecast U.S. spot crude prices would remain unchanged in 2025, the U.S. Energy Information Administration (EIA) projected crude output would rise from a record 13.2 MMbbl/d in 2024 to around 13.6 MMbbl/d in 2025.

On the gas side, the EIA projected a 73% increase in spot gas prices in 2025 would prompt producers to boost drilling activity this year after a 14% price drop in 2024 caused several energy firms to cut output for the first time since the COVID-19 pandemic reduced demand for the fuel in 2020. 

The EIA projected gas output would rise to 104.6 Bcf/d in 2025, up from 103.1 Bcf/d in 2024 and a record 103.6 Bcf/d in 2023.

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