Rig Count

Weekly U.S. and international drilling rig count data, powered by Baker Hughes. Track oil and gas rig trends and production outlook.

Why the Rig Count Matters

The Baker Hughes rig count is one of the most closely watched indicators of U.S. oil and gas production activity. Published weekly, it measures the number of drilling rigs actively exploring for or developing oil and gas reserves. A rising rig count typically signals growing production capacity and potential future supply increases, while a declining count may indicate reduced investment and tightening supply ahead.

The U.S. rig count has declined from its 2023 peak as operators prioritize capital discipline and shareholder returns over aggressive drilling programs. The Permian Basin in West Texas and New Mexico accounts for the majority of active oil rigs, followed by the Eagle Ford, Bakken, and DJ-Niobrara basins.

What is the rig count and why does it matter?
The rig count measures the number of drilling rigs actively exploring for or developing oil and gas. Published weekly by Baker Hughes, it serves as a leading indicator of future production capacity. A rising count signals potential supply growth; a declining count suggests tightening ahead.
How often is the rig count updated?
Baker Hughes publishes the U.S. rig count every Friday at 1:00 PM Eastern Time. The international rig count is published monthly. Both datasets are widely followed by traders, analysts, and energy company executives.
What is the relationship between rig count and oil prices?
The rig count tends to follow oil prices with a lag of 4-6 months. When prices rise, operators add rigs to capture higher margins. When prices fall, rigs are idled to preserve capital. However, improving well productivity means each rig today produces more oil than a decade ago, weakening the direct correlation.
Why has the rig count been declining despite elevated oil prices?
Capital discipline. After years of over-spending on growth, U.S. shale operators now prioritize shareholder returns through dividends and buybacks. Companies are achieving production growth with fewer rigs by drilling longer laterals, optimizing well spacing, and improving completion techniques.
Which basins account for the most rigs?
The Permian Basin in West Texas and New Mexico accounts for over 60% of all U.S. oil rigs. The Eagle Ford in South Texas, the Bakken in North Dakota, and the DJ-Niobrara in Colorado make up most of the remainder. Offshore Gulf of Mexico rigs are counted separately.

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