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U.S. drilling activity was unchanged this week as a jump in natural gas rigs offset a decline in oil drilling, according to the latest data from Baker Hughes.
The U.S. rig count held at 588 for the week ended August 28, unchanged from the previous week but up 52 rigs, or nearly 10%, from 536 a year ago.
The headline number, however, masks a notable shift underneath.
Oil rigs fell by five to 447, while natural gas rigs increased by five to 132. Miscellaneous rigs were unchanged at nine.
Compared with a year ago, the U.S. is running 35 more oil rigs and 13 more gas rigs.
The increase in gas-directed drilling comes despite relatively modest U.S. natural gas prices. NYMEX natural gas was trading around US$2.88 per MMBtu Friday, while WTI crude was around US$83 per barrel.
Oil prices have weakened sharply over the past week as the market weighs signs of improving flows through the Strait of Hormuz against continued geopolitical tensions involving Iran. WTI was headed for a weekly decline of more than 4%.
Yet oil above US$80 continues to provide a relatively supportive backdrop for U.S. producers, particularly in the Permian Basin.
Baker Hughes data show the Permian added one rig this week to reach 250, although that remains below the 254 rigs operating in the basin a year ago.
The Eagle Ford added two rigs to reach 43, up from 41 last week and 39 a year ago.
The gas-focused Haynesville added two rigs, while the Marcellus was unchanged.
Offshore activity weakened, with the U.S. offshore count dropping by one to nine rigs. The Gulf of Mexico declined by one to seven.
The bigger picture remains one of higher U.S. drilling activity than a year ago, but with producers continuing to exercise considerably more capital discipline than during previous commodity-price cycles.
The U.S. now has nearly 10% more rigs working than it did at this point last year, even as improvements in drilling speeds, longer laterals and well productivity allow producers to extract more hydrocarbons from each operating rig.
This week’s numbers reinforce that distinction.
The total fleet did not grow, but drilling capital shifted: fewer rigs chasing oil and more rigs targeting natural gas.
Source: Baker Hughes North America Rig Count Report, August 28, 2026. Commodity prices are August 28 market prices.
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