U.S. energy firms cut the number of active oil and natural gas rigs to 545 in the week to April 10, down three from the prior week, according to Baker Hughes. It was the third such cut in four weeks and left the rig count at its lowest point since late March.
The total is down 38 rigs, or about 7%, from the same week a year earlier, Baker Hughes said.
Oil holds, gas slips
Oil rigs held steady at 411 for the week. Gas rigs fell by three to 127, their lowest count since late March. Miscellaneous rigs held at seven.
Gulf of Mexico rig count climbs
In the Gulf of Mexico, the rig count rose by three to 13, the highest level since December 2024, Baker Hughes said.
Third straight year of declines
The U.S. oil and gas rig count fell about 7% in 2025, following a 5% drop in 2024 and a 20% drop in 2023. Baker Hughes tied the multi-year slide to lower U.S. oil prices, which have pushed energy firms to prioritize shareholder returns and debt paydown over adding output.
Producers pull back on spending
TD Cowen said the 18 exploration and production companies it tracks planned to spend about 1% less on capital expenditure in 2026 than in 2025. That follows a roughly 4% cut in 2025 and roughly flat spending in 2024, a reversal from increases of 27% in 2023, 40% in 2022 and 4% in 2021.
EIA sees output easing as prices firm
WTI crude prices were expected to rise in 2026 for the first time in four years, driven by the Iran war. Even so, the U.S. Energy Information Administration projected crude output would slip from a record 13.6 million barrels a day in 2025 to 13.5 million bpd in 2026. On the gas side, the EIA projected output would climb from a record 107.7 billion cubic feet a day in 2025 to 109.6 bcfd in 2026, with Henry Hub spot prices forecast to rise about 4% in 2026.
As of June 15, 2026, WTI crude was trading at $84.65 a barrel and Henry Hub gas stood at $3.06 per million British thermal units, according to the EIA.
