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US Rig Count Dips for First Time in Six Weeks, Led by Oil
U.S. energy firms reduced the number of active oil and gas drilling rigs for the first time in six weeks, signaling a potential pause in the recent ramp-up of activity. The total rig count serves as a key forward-looking indicator for domestic energy production.
Weekly Data Breakdown
Energy services firm Baker Hughes reported on Friday that the combined oil and gas rig count fell by one to 587 in the week ending July 24. Despite the weekly decline, the total count is still 45 rigs, or about 8%, higher than the same period last year.
A breakdown of the data shows the decline was concentrated in oil drilling:
- Oil rigs decreased by two to 450, their lowest level since mid-July.
- Gas rigs increased by one to 127, the highest count since mid-May.
- Miscellaneous rigs were unchanged at 10.
AdMarket Context and Production Outlook
The recent dip follows several years of drilling restraint. The total U.S. rig count fell by 20% in 2023, 5% in 2024, and 7% in 2025 as companies prioritized debt reduction and shareholder returns over aggressive production growth amid lower oil prices.
Looking ahead, West Texas Intermediate (WTI) crude prices are anticipated to rise in 2026, with the source report citing potential supply disruptions. Even with a fluctuating rig count, the U.S. Energy Information Administration (EIA) projects that domestic crude output will continue to grow, rising from a record 13.6 million barrels per day (bpd) in 2025 to 13.8 million bpd in 2026.
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