U.S. energy firms this week added the most oil and natural gas rigs in a week since November, with the count rising for a second week in a row, energy services firm Baker Hughes said in its closely followed report on Sept. 15.

The oil and gas rig count, an early indicator of future output, rose nine to 641 in the week to Sept. 15, its highest since mid-August. 

Despite this week's rig increase, Baker Hughes said the total count was still down 122, or 16%, below this time last year.

U.S. oil rigs rose by two, the most in a week since April, to 515, while gas rigs gained eight to 121.

Most of the rigs added this week were in Texas, the state that already has about 49% of all of the nation's active rigs. Drillers added seven rigs in Texas, the most in a week in the state since December 2022.

U.S. oil futures this week hit their highest in 2023, and were up about 13% so far this year after gaining about 7% in 2022. U.S. gas futures, meanwhile, have plunged about 41% so far this year after rising about 20% last year.

U.S. crude production, which recovered to pre-pandemic levels last week, hitting its highest since March 2020, were on track to rise 870,000 bbl/d in 2023 to a record 12.8 MMbbl/d, and 13.2 MMbbl/d in 2024, according to Energy Information Administration (EIA) projections. That compares with a record 12.3 MMbbl/d in 2019.

Despite lower prices for gas, production was on track to rise from a record 98.1 Bcf/d in 2022 to 102.7 Bcf/d in 2023 and 104.9 Bcf/d in 2024, according to the EIA.

That is due mostly to increased interest in oil drilling in shale basins that also produce lots of associated gas like the Permian in West Texas and eastern New Mexico.

Vital Energy has signed agreements valued at about $1.17 billion to expand its acreage in the Permian, where dealmaking is gathering pace as drillers tap the largest U.S. oil patch to quickly replenish their depleting reserves. 

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