Baker Hughes: US drillers add oil and natgas rigs for first time in 12 weeks

Baker Hughes: US drillers add oil and natgas rigs for first time in 12 weeks

Houston, TX - Baker Hughes, a leading energy services firm, reported that U.S. energy firms added oil and natural gas rigs for the first time in 12 consecutive weeks, marking a significant shift in drilling activity. The oil and gas rig count, an early indicator of future output, increased by two to 539 in the week ending July 11, 2025, the highest level since October 2021 [1].

The increase was primarily driven by a rise in oil rigs, which increased by one to 425, their highest level since September 2021. Meanwhile, gas rigs remained unchanged at 108. The total U.S. rig count is now 47 rigs above the level seen a year ago [1].

In Texas, the biggest oil and gas producing state, the rig count rose by one to 256, the highest since November 2021. The Haynesville shale region in Arkansas, Louisiana, and Texas saw the most significant increase, with the rig count rising by one to 38, the highest since March 2024 [1].

This uptick in drilling activity comes after a period of decline, with the oil and gas rig count falling by about 5% in 2024 and 20% in 2023 due to lower U.S. oil and gas prices. Energy firms have been focusing on boosting shareholder returns and paying down debt rather than increasing output [1].

However, the recent increase in drilling activity may be short-lived. The U.S. Energy Information Administration (EIA) projects that U.S. spot crude prices will decline for a third consecutive year in 2025, while gas prices are expected to rise by 68% [1]. These projections may lead energy firms to focus more on capital discipline and shareholder returns, potentially curbing future drilling activity.

References:
[1] https://cyprusshippingnews.com/2025/07/16/us-oil-gas-rig-count-down-for-11th-week-to-lowest-since-2021-baker-hughes-says/