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U.S. Energy Rig Count Holds Steady for Second Consecutive Week, Baker Hughes Reports
The number of active oil and gas drilling rigs in the United States held steady for the second consecutive week, signaling a pause in new drilling activity by energy producers. The total count remained at 588 for the week ending Sept. 4, according to a closely watched report from energy services firm Baker Hughes.
Rig Count Breakdown
The stability in the total count masks opposing movements in oil and gas-focused drilling. The number of rigs primarily exploring for crude oil increased by two to 449, while rigs targeting natural gas fell by two to 130. The count for miscellaneous rigs was unchanged at nine.
The weekly rig count is a key indicator of future U.S. oil and gas production. The recent plateau follows a multi-year decline in drilling activity as energy companies prioritized capital discipline, focusing on shareholder returns and debt reduction rather than aggressive production growth. Baker Hughes data shows the overall rig count fell by 20% in 2023, 5% in 2024, and 7% in 2025.
AdProduction Outlook
Despite the subdued drilling activity, the U.S. Energy Information Administration (EIA) forecasts continued growth in domestic energy output. The agency projects crude oil production will rise from a record 13.6 million barrels per day (bpd) in 2025 to 13.8 million bpd in 2026.
The EIA attributes its oil production forecast to an anticipated increase in spot West Texas Intermediate prices in 2026. For natural gas, the agency expects production to grow from a record 107.6 billion cubic feet per day (bcfd) in 2025 to 111.2 bcfd in 2026, driven by rising demand for electricity from data centers and for liquefied natural gas (LNG) exports.
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