By Scott DiSavino
June 13 (Reuters) - U.S. energy firms this week cut the number of oil and natural gas rigs operating for a seventh week in a row to the lowest since November 2021, energy services firm Baker Hughes BKR.O said in its closely followed report on Friday.
The oil and gas rig count, an early indicator of future output, fell by four to 555 in the week to June 13. RIG-USA-BHI, RIG-OL-USA-BHI, RIG-GS-USA-BHI
Baker Hughes said this week's decline puts the total rig count down by 35 rigs or 6% below this time last year.
The oil rig count fell by three to 439 this week, its lowest since October 2021, while gas rigs slipped by one to 113.
The oil and gas rig count declined by about 5% in 2024 and 20% in 2023 as lower U.S. oil CLc1 and gas NGc1 prices over the past couple of years prompted energy firms to focus more on boosting shareholder returns and paying down debt rather than increasing output.
The independent exploration and production (E&P) companies tracked by U.S. financial services firm TD Cowen said they planned to cut capital expenditures by around 3% in 2025 from levels seen in 2024.
That compares with roughly flat year-over-year spending in 2024, and increases of 27% in 2023, 40% in 2022 and 4% in 2021.
Even though analysts forecast U.S. spot crude prices would decline for a third year in a row in 2025, the U.S. Energy Information Administration $(EIA)$ projected crude output would rise from a record 13.2 million barrels per day (bpd) in 2024 to around 13.4 million bpd in 2025.
On the gas side, the EIA projected an 84% increase in spot gas NG-W-HH-SNL 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. NGAS/POLL
The EIA projected gas output would rise to 105.9 billion cubic feet per day (bcfd) in 2025, up from 103.2 bcfd in 2024 and a record 103.6 bcfd in 2023.
(Reporting by Scott DiSavinoEditing by Marguerita Choy)
((scott.disavino@thomsonreuters.com; +1 332 219 1922; Reuters Messaging: scott.disavino.thomsonreuters.com@reuters.net))