Story
U.S. Energy Rig Count Holds Steady for Second Consecutive Week, Baker Hughes Reports
Summary
The total number of active U.S. oil and gas rigs was unchanged at 588 for a second straight week, as a small increase in oil-directed drilling was offset by a decline in gas rigs, according to data from Baker Hughes.
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.
Read next
More on Commodities
US-China Summit to Tackle Key Commodity Disputes in Agriculture, Energy
The upcoming meeting between President Trump and President Xi is expected to focus on resolving trade frictions involving U.S. agricultural exports, Chinese energy tariffs, and the supply of critical rare earth materials.
Citi Warns Hawkish Fed Policy Threatens Non-AI Economic Growth
A recent report from Citi Research warns that the Federal Reserve's hawkish monetary policy could suppress the U.S. housing market and make the broader economy dangerously dependent on AI investment.
Petrobras Board Approves Participation in New Government Diesel Subsidy Program
Brazil's state-run oil company, Petrobras, will join a new government program providing a 1.00 real per liter subsidy on diesel, a move aimed at stabilizing fuel prices ahead of the upcoming presidential election.
Oil Prices Retreat as China Urges Iran to Curb Houthi Attacks on Saudi Facilities
Crude oil futures fell on Friday after reports that China, at Saudi Arabia's request, pressured Iran to rein in Houthi attacks, easing some geopolitical supply fears. However, ongoing pipeline disruptions and refining constraints continue to support the market.