Sept 5 (Reuters) - U.S. energy firms this week added oil

and natural gas rigs for the first time in seven weeks, energy

services firm Baker Hughes ( BKR ) said in its closely followed

report on Friday.

The oil and gas rig count, an early indicator of future

output, rose by one to 537 in the week to September 5.

Despite this week's rig increase, Baker Hughes ( BKR ) said the

total count was still down 45 rigs, or 7.7%, below this time

last year.

Baker Hughes ( BKR ) said oil rigs rose by two to 414 this week,

while gas rigs fell by one to 118.

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

boosting shareholder returns and paying down debt rather than

increasing output.

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 a 65% 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 106.4 billion

cubic feet per day (bcfd) in 2025, up from 103.2 bcfd in 2024

and a record 103.6 bcfd in 2023.