Nov 8 (Reuters) - U.S. energy firms this week kept the

number of oil and natural gas rigs operating unchanged for a

record third week in a row, according to energy services firm

Baker Hughes' ( BKR ) data going back to 1987.

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

output, was steady at 585 in the week to Nov. 8, Baker Hughes ( BKR )

said on Friday.

Baker Hughes ( BKR ) said that puts the total rig count down 31

rigs, or 5% below this time last year.

Baker Hughes ( BKR ) said oil rigs held at 479 this week, while gas

rigs were unchanged at 102.

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 2% so far in 2024

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

were up about 6% so far in 2024 after plunging by 44% in 2023.

U.S. crude output was on track to rise from a record 12.9

million barrels per day (bpd) in 2023 to 13.2 million bpd in

2024 and 13.5 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 monthly average

spot prices at the U.S. Henry Hub benchmark in

Louisiana plunged to a 32-year low in March.

That should cause U.S. gas output to slide to 103.5 billion

cubic feet per day (bcfd) in 2024, down from a record high of

103.8 bcfd in 2023, according to the EIA.