March 22 (Reuters) - U.S. energy firms this week cut the

number of natural gas rigs operating to the lowest level since

January 2022, energy services firm Baker Hughes ( BKR ) said in

its closely followed report on Friday.

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

future output, fell by five to 624 in the week to March 22.

Baker Hughes ( BKR ) said that puts the total rig count down 134, or

18%, below this time last year.

The number of oil rigs fell by one to 509 this week, while

gas rigs decreased by four to 112, their lowest level since mid

January 2022, according to Baker Hughes ( BKR ).

Most of those gas rig cuts were in the Haynesville shale gas

field in Louisiana, Texas and Arkansas, which fell by four to 36

rigs this week, the lowest since October 2020.

The oil and gas rig count dropped about 20% in 2023

after rising by 33% in 2022 and 67% in 2021, due to a decline in

oil and gas prices, higher labor and equipment costs from

soaring inflation and as companies focused on paying down debt

and boosting shareholder returns instead of raising output.

U.S. oil futures were up about 12% so far in 2024

after dropping by 11% in 2023. U.S. gas futures,

meanwhile, were down about 34% so far in 2024 after plunging by

44% in 2023.

Amid the increase in crude prices, oil output from top

shale-producing regions was expected to rise in April to its

highest in four months, the U.S. Energy Information

Administration (EIA) said in its monthly Drilling Productivity

Report on Monday.

Total gas output in the big shale basins, however, will ease

to a three-month low, the EIA said, as some producers slash

spending and reduce drilling activities after gas futures

plunged to a 3-1/2-year in February.

The EIA said producers drilled 862 oil and gas wells in

February and completed 865, the most drilled and completed since

December 2023.

Total drilled but uncompleted oil and gas wells (DUC) slid

by three to 4,483 in February, the lowest since DUCs fell to a

record low of 4,477 in December 2023, according to EIA data

going back to December 2013.

U.S. oil output was still on track to hit record highs in

2024 and 2025 due to rising prices, efficiency gains and as

firms complete work on DUCs.

U.S. gas output in 2024, however, will drop from the record

high hit last year, according to the EIA.