U.S. energy companies increased their active drilling rigs for the second straight week, moving the combined oil and natural gas rig count up by three to 547 in the week ending May 1, according to data released Friday by energy services firm Baker Hughes (NYSE:BKR).
The weekly gains represent the first consecutive weekly rise in activity since mid-March. The uptick brought the industry back to levels last seen in early April.
Breakdown of this week's changes
- Oil rigs: Increased by one to 408, a level not seen since mid-April.
- Gas rigs: Rose by one to 130, returning to their highest point since early April.
- Miscellaneous rigs: Added one rig, bringing that category to nine.
Despite the recent additions, Baker Hughes noted that the overall rig count is still 37 rigs below the tally for the same period last year, a decline of 6% year-over-year.
The broader trend over recent years shows a continued contraction in active rigs. The count fell 7% in 2025, 5% in 2024, and 20% in 2023. Baker Hughes and industry observers link that multi-year decline to a period of lower oil prices that has prompted many energy companies to reorient capital allocation toward shareholder returns and debt reduction rather than expanding production.
Market participants and analysts often view the rig count as an early indicator of future oil and gas output. The modest rises this week indicate a short-term increase in drilling activity, while the persistent year-over-year decline reflects longer-term shifts in investment priorities within the sector.
Context and implications
The recent back-to-back weekly gains restored the combined rig count to levels seen in early April, with incremental increases across oil, gas and miscellaneous categories. However, the aggregate decline relative to last year underscores that drilling activity remains subdued compared with the prior 12-month period. Energy firms' strategic emphasis on shareholder returns and balance sheet repair, cited in the data commentary, has been a central factor shaping rig counts over the past several years.