Sept 27 (Reuters) - U.S. energy firms this week cut the

number of oil and natural gas rigs operating for a second week

in a row, 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, fell by 1 to 587 in the week to Sept. 27, the lowest

since early September.

Baker Hughes ( BKR ) said oil rigs fell by 4 to 484 this week, their

lowest since early September, while gas rigs rose by 3 to 99,

their highest since late July.

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 down about 4% so far in 2024

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

were up about 16% so far in 2024 after plunging by 44% in 2023.

Despite the decrease in oil prices, drillers were still on

track to boost U.S. crude output from a record 12.9 million

barrels per day (bpd) in 2023 to 13.3 million bpd in 2024 and

13.7 million bpd in 2025, according to the latest U.S. Energy

Information Administration (EIA) outlook.

On the gas side, several producers reduced spending on

drilling activities earlier in the year after average spot

prices at the U.S. Henry Hub benchmark in

Louisiana plunged to a 32-year low in March.

That drilling decline should cause U.S. gas output to slide

to 103.4 billion cubic feet per day (bcfd) in 2024, down from a

record high of 103.8 bcfd in 2023, according to the EIA.