US Oil Rigs Rise, Offsetting Decline in Natural Gas Drilling

The U.S. rig count showed a divergent trend between oil and natural gas drilling activity last week, with the total number of active rigs holding steady. The number of rigs drilling for oil rose by two, while the count for natural gas fell by two, according to weekly data released Friday by oil services firm Baker Hughes.

Rig Count Details

The number of active oil rigs in the United States increased to 449 for the week ending September 4. In contrast, rigs primarily targeting natural gas decreased to 130.

This shift left the total U.S. rig count unchanged at 579. The count for horizontal rigs, the primary method for extracting oil and gas from shale formations, also remained flat at 535. The rig count is a key forward-looking indicator of future U.S. energy production.

Regional Drilling Activity

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Activity varied across the major U.S. energy-producing regions and states:

• The Permian Basin in West Texas and New Mexico, the largest U.S. shale oil play, saw an increase of one rig.
• The Niobrara basin also added one rig.
• The Haynesville shale, a major natural gas formation, saw its rig count decline by one.
• The rig count in the Gulf of Mexico also decreased by one.

At the state level, Texas gained one rig while Pennsylvania, a key state for Appalachian gas, lost one. The counts in the Eagle Ford, Williston, and Utica basins were unchanged from the prior week.