This week, U.S. energy companies increased the number of active oil and natural gas rigs for the first time in three weeks, according to energy services firm Baker Hughes.

The oil and gas rig count, which serves as an early indicator of future production, rose by five, reaching a total of 548 rigs as of April 2.

Despite this week's increment, Baker Hughes reported that the overall rig count remains down by 42 rigs, representing a 7.1% decrease compared to the same period last year.

In detail, the number of oil rigs increased by two to 411, while the count of gas rigs went up by three to 130.

Over the past few years, the oil and gas rig count has experienced significant declines, with a drop of about 7% in 2025, 5% in 2024, and 20% in 2023. This trend is attributed to lower U.S. oil prices, which have led energy companies to prioritize shareholder returns and debt repayment over boosting production.

However, rising oil prices, influenced by supply disruptions caused by the conflict in the Middle East, are anticipated to enhance U.S. crude production. The Energy Information Administration (EIA) projects that output will average 13.61 million barrels per day (bpd) in 2026 and increase to 13.83 million bpd by 2027.

On the production side, U.S. crude oil output saw its largest decline in two years this January due to a severe winter storm that disrupted operations across vast regions of the country, as reported by the EIA.

In the natural gas sector, the EIA forecasts that output will rise from a record 107.7 billion cubic feet per day (bcfd) in 2025 to 109.5 bcfd in 2026, with spot prices at the U.S. Henry Hub benchmark in Louisiana expected to increase by approximately 7% in 2026.

Additionally, U.S. exports of liquefied natural gas reached a record high in March, with plants operating above their nameplate capacity and new facilities starting operations, according to preliminary data from financial firm LSEG.