U.S. Oil and Gas Rig Count Rises for First Time in Four Weeks, Baker Hughes Reports

3 weeks ago

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U.S. energy companies added oil and natural gas rigs this week for the first time in a month, according to Baker Hughes’ closely watched report released Thursday. The rig count, considered a key indicator of future output, increased by two to 585 in the week ending April 17.

The report was published a day early due to the Good Friday holiday.

Despite the weekly uptick, the total rig count remains 34 rigs—or 5%—below the same period last year, Baker Hughes noted.

Oil rigs rose by one to 481, while natural gas rigs also climbed by one, reaching 98.

The Utica shale basin—which spans parts of Ohio, Pennsylvania, and West Virginia—saw the biggest regional gain this week, with drillers adding two rigs. That brought Utica’s total to 13, the highest level since February 2024.

The overall rig count has declined about 5% so far in 2024, following a 20% drop in 2023. Persistent weakness in U.S. oil and gas prices over the past two years has pushed energy firms to prioritize shareholder returns and debt reduction over production growth.

Looking ahead, analysts expect U.S. spot crude prices to decline for a third consecutive year in 2025. Nevertheless, the U.S. Energy Information Administration (EIA) projects domestic crude output will rise from a record 13.2 million barrels per day (bpd) in 2024 to around 13.5 million bpd next year.

However, that forecast is slightly lower than the EIA’s March outlook, reflecting expectations of softer oil prices amid concerns that President Donald Trump’s tariff policies could dampen global economic growth and reduce demand.

The EIA’s latest long-term forecast also suggests the nearly 20-year shale boom that transformed the U.S. into the world’s top oil producer is nearing its peak—potentially undercutting Trump’s push for expanded domestic supply.

According to the agency, U.S. crude output is expected to peak at 14 million bpd in 2027 and hold steady through 2030 before beginning a sharp decline. Shale production is forecast to top out at 10 million bpd in 2027—up from 9.7 million bpd in 2024—then fall to 9.3 million bpd by 2050.