U.S. energy firms this week cut the number of rigs operating for the first time in six weeks, energy services firm Baker Hughes said in its closely followed report on Friday. The total oil and gas rig count, an early indicator of future output, fell by one to 587 in the week to July 24, the lowest since mid-July. Despite this week’s rig decline, Baker Hughes said the total count was still up 45 rigs, or 8% above this time last year. Baker Hughes said oil rigs fell by two to 450 this week, their lowest since mid-July, while gas rigs rose by one to 127, their highest since mid-May, and other miscellaneous rigs held at 10. The oil and gas rig count declined by 7% in 2025, 5% in 2024, and 20% in 2023 as lower U.S. oil prices prompted energy firms to focus more on boosting shareholder returns and paying down debt rather than increasing output. But now with spot U.S. West Texas Intermediate (WTI) crude prices expected to rise in 2026 due to supply disruptions from the U.S.-Israeli war on Iran after declining in 2023, 2024, and 2025, the U.S. Energy Information Administration (EIA) projected crude output will rise from a record 13.6 million barrels per day (bpd) in 2025 to 13.8 million bpd in 2026. On the gas side, EIA projected output will jump from a record 107.7 billion cubic feet per day (bcfd) in 2025 to 111.3 bcfd in 2026 as demand for the fuel rises to produce electricity for power-hungry data centers and liquefied natural gas (LNG) for export.
(Reporting by Scott DiSavino Editing by Nick Zieminski and David Gregorio)