Sept 12 (Reuters) - U.S. energy firms this week added

oil and natural gas rigs for a second week in a row for the

first time since April, 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 two to 539 in the week to September 12. Baker Hughes ( BKR ) said oil rigs rose by two to 416 this week, their

highest since July, while gas rigs held steady at 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.

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 4% in 2025 from

levels seen in 2024.

That compares with roughly flat year-over-year spending in

2024, 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 a 61% 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 106.6 billion

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

and a record 103.6 bcfd in 2023.