Commodities April 24, 2026 02:34 PM

U.S. Rig Count Inches Up After Three-Week Slide, Driven by Gas Activity

Baker Hughes reports a one-rig increase to 544 in the week to April 24, with gas rigs leading gains while oil rigs continue to slip

By Hana Yamamoto
U.S. Rig Count Inches Up After Three-Week Slide, Driven by Gas Activity

U.S. oil and natural gas drilling activity rose by a single rig in the week to April 24, reversing three consecutive weeks of declines, according to Baker Hughes. The total active rig count reached 544, up from the prior week but still down year-on-year. Oil rigs fell while gas rigs posted gains, reflecting divergent trends within the industry.

Key Points

  • Total U.S. oil and gas rigs rose by one to 544 in the week to April 24, the first weekly increase after three consecutive declines.
  • Oil rigs fell by three to 407, their lowest level since February; gas rigs increased by four to 129, the highest since early April.
  • The overall rig count is down 43 rigs, or about 7%, versus the same week a year ago, reflecting multi-year declines in activity.

U.S. energy companies added one active drilling rig in the week ending April 24, bringing the combined oil and natural gas rig count to 544, energy services firm Baker Hughes (NYSE:BKR) reported on Friday. The increase marks the first week-over-week rise after three weeks of declines and represents the highest total since mid-April.

Despite the modest weekly uptick, the overall rig count remains below last year. Baker Hughes said the current total is down by 43 rigs, or about 7%, compared with the same week a year earlier. The weekly breakdown shows contrasting movements by commodity: oil-directed rigs decreased by three to 407, a level Baker Hughes identifies as the lowest since February, while gas-directed rigs rose by four to reach 129, the highest count since early April. Miscellaneous rigs were unchanged at eight.

The Baker Hughes rig count is published every week and is commonly used as an early barometer of prospective U.S. hydrocarbon output. The company’s data tracks the number of drilling rigs actively operating across the United States and is used by market participants to gauge near-term changes in production capacity.

Baker Hughes' report also highlights recent annual trends in U.S. rig activity. The combined oil and gas rig count declined by about 7% in 2025, fell 5% in 2024, and dropped 20% in 2023. In commentary accompanying these trends, lower U.S. oil prices have been cited as encouraging energy firms to prioritize boosting shareholder returns and reducing leverage over expanding drilling activity.

As a weekly dataset, the rig count offers a timely snapshot of drilling activity, but it is an early indicator rather than a direct measure of immediate production levels. This week's numbers show gas drilling momentum partially offsetting declines in oil-directed activity, while the year-on-year reduction in total rigs underscores an ongoing shift in operator capital allocation decisions.


Source note: Report based on the weekly rig count release from Baker Hughes.

Risks

  • The rig count is an early indicator of future output, so continued declines could signal lower near-term U.S. production - a risk for energy supply-sensitive markets.
  • Sustained lower U.S. oil prices have prompted firms to prioritize shareholder returns and debt reduction over capacity expansion, which may constrain supply growth.
  • Weekly rig data provide a timely snapshot but are not a definitive measure of immediate production, creating uncertainty for market participants relying solely on rig counts.

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