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US Rig Count Holds Steady at 588 as Oil and Gas Drilling Diverges
The number of active oil and gas drilling rigs in the United States held steady this week, though the flat total masks a divergence between oil and gas-focused activity. The total count remained at 588 for the week ending August 28, according to the latest data from energy services firm Baker Hughes.
The rig count is a closely watched early indicator of future U.S. energy output. While the headline number was stable, the components showed opposing movements.
A Divergent Picture
The details from the Baker Hughes report show a clear shift between commodities over the past week:
- Total active rigs: 588 (unchanged from the prior week)
- Oil-directed rigs: 447 (a decrease of 5)
- Gas-directed rigs: 132 (an increase of 5)
AdDespite the weekly pause, the current rig count represents a significant year-over-year increase. The total is up by 52 rigs, or 9.7%, compared to the same period last year, signaling a broader recovery in drilling activity.
Regional Activity and Context
Activity in the Permian Basin, the most prolific U.S. shale oil formation spanning West Texas and New Mexico, was unchanged with its rig count holding at 267. Texas, the nation's top energy-producing state, added one rig to reach a total of 282, its highest level since February 2025.
This week's data follows a multi-year period of declining activity. The source notes the total rig count fell by 7% in 2025 and 5% in 2024, after a 20% drop in 2023, as energy companies prioritized shareholder returns and debt reduction over aggressive production growth.
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