US drillers add oil and fuel rigs for first time in 4 weeks, Baker Hughes says

By Scott DiSavino

(Reuters) – U.S. power companies this week added oil and pure fuel rigs for the primary time in 4 weeks, power providers agency Baker Hughes mentioned in its intently adopted report on Thursday.

The oil and fuel rig depend, an early indicator of future output, rose by two to 585 within the week to April 17.

Baker Hughes launched the rig depend report someday early on Thursday because of the Good Friday vacation.

Regardless of this week’s rig improve, Baker Hughes mentioned the full depend was nonetheless down 34 rigs, or 5% under this time final yr.

Baker Hughes mentioned oil rigs rose by one to 481 this week, whereas fuel rigs gained one to 98.

The oil and fuel rig depend declined by about 5% in 2024 and 20% in 2023 as decrease U.S. oil and fuel costs over the previous couple of years prompted power companies to focus extra on boosting shareholder returns and paying down debt somewhat than rising output.

Regardless that analysts forecast U.S. spot crude costs would decline for a 3rd yr in a row in 2025, the U.S. Power Info Administration (EIA) projected crude output would rise from a report 13.2 million barrels per day (bpd) in 2024 to round 13.5 million bpd in 2025.

That improve in U.S. crude output, nonetheless, was decrease than EIA’s outlook in March attributable to decrease oil value forecasts as U.S. President Donald Trump’s tariffs improve the possibilities of weaker international financial development and oil demand.

The EIA’s annual forecast this week additionally confirmed that the practically two-decades-old shale increase that turned the U.S. into the world’s largest oil producer is drawing nearer to its finish, difficult Trump’s imaginative and prescient of unleashing greater home oil provide.

U.S. oil output will peak at 14 million bpd in 2027 and keep that stage by means of the top of the last decade, earlier than quickly declining, the EIA mentioned. Shale manufacturing will peak at 10 million bpd in 2027, up from about 9.7 million bpd this yr, after which fall to 9.3 million bpd by 2050.

(Reporting by Scott DiSavino; Modifying by Marguerita Choy)