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US Oil and Gas Rig Count Slips to 598, Ending Five-Week Streak of Gains
Summary
The number of active oil and gas rigs in the United States fell by one to 598 this week, the first decline in six weeks, according to the latest data from Baker Hughes.
The U.S. oil and gas rig count registered a minor decline this week, ending a five-week period of increases. The total number of active rigs fell by one to 598 for the week ending Friday, data from energy services firm Baker Hughes showed.
This marks the lowest total rig count since mid-September. The slight downturn was driven by a reduction in natural gas exploration, while oil-directed activity continued to expand.
Rig Count Breakdown
The weekly data showed a split between oil and gas drilling operations:
- Oil rigs increased by one to 456, their highest level since May 2025.
- Gas rigs decreased by two to 133, the lowest count since mid-September.
- Miscellaneous rigs remained unchanged at nine.
AdDespite the weekly dip, the total rig count remains significantly higher than a year ago. The current count is up by 49 rigs, or 9%, compared to the same period last year, indicating a sustained recovery in drilling activity.
Context and Production Outlook
The rig count is a closely watched leading indicator for future U.S. crude oil and natural gas production. The recent trend follows several years of contraction, with the rig count falling by 7% in 2025, 5% in 2024, and 20% in 2023 as energy companies focused on capital discipline and shareholder returns amid lower oil prices.
However, market dynamics appear to be shifting. Spot U.S. West Texas Intermediate (WTI) crude prices are projected to rise in 2026 for the first time in four years, partly attributed to potential supply disruptions. In line with this, the U.S. Energy Information Administration (EIA) forecasts that domestic crude output will rise from a record 13.7 million barrels per day in 2025 to 13.8 million barrels per day in 2026.
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