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US Energy Rig Count Rises for Sixth Time in Seven Weeks, Baker Hughes Reports
Summary
The number of active U.S. oil and gas rigs increased slightly for the week ending July 31, marking a continued, gradual rebound in drilling activity, according to data from Baker Hughes. The count is now up 9% from the same period last year, signaling producer confidence amid forecasts for record domestic output.
U.S. energy firms increased their active oil and gas drilling rigs for the sixth time in the last seven weeks, a sign of a slow but steady expansion in upstream activity. The total rig count rose by one to 588 for the week ending July 31, according to weekly data released Friday by energy services firm Baker Hughes.
Weekly Data Breakdown
The modest weekly increase was driven entirely by oil-directed drilling, while gas activity remained flat. Compared to the same time last year, the total count is significantly higher, underscoring a shift from prior years of contraction.
- Total Rigs: Rose by one to 588.
- Oil Rigs: Increased by one to 451, their highest level since mid-July.
- Gas Rigs: Remained unchanged at 127.
- Year-Over-Year: The combined count is up 48 rigs, or 9%, from this time last year.
AdContext and Production Outlook
This recent uptick in drilling follows several years of declining activity, with the rig count falling 20% in 2023, 5% in 2024, and 7% in 2025. During that period, many energy companies prioritized capital discipline—focusing on shareholder returns and debt reduction—over aggressive production growth, particularly in response to lower U.S. oil prices.
The rig count, a key forward-looking indicator of future output, is now rising alongside projections for record U.S. energy production. The U.S. Energy Information Administration (EIA) forecasts that domestic crude output will climb from a record 13.6 million barrels per day (bpd) in 2025 to 13.8 million bpd in 2026. The EIA also projects natural gas production will grow from a record 107.7 billion cubic feet per day (bcfd) in 2025 to 111.3 bcfd in 2026, supported by rising demand from data centers and for liquefied natural gas (LNG) exports.
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