U.S. energy firms added one rig this week, bringing the total oil and gas rig count to 588 for the week to July 31, according to Baker Hughes. That marks the sixth increase in seven weeks and puts the total 48 rigs, or 9%, above the same week last year.
Oil rigs rose by one to 451, their highest level since mid-July. Gas rigs held steady at 127, and miscellaneous rigs held at 10.
Basin breakdown
| Basin | Rig count | Change | Note |
|---|---|---|---|
| Eagle Ford (South Texas) | 49 | +2 | Highest since March 2025 |
| Utica (PA, OH, WV) | 11 | -1 | Lowest since May 2025 |
| Ohio | 10 | -1 | Lowest since May 2025 |
The Utica and the Marcellus make up the Appalachia formation, the largest U.S. gas-producing shale basin.
Multi-year trend, then a turn
The rig count fell 7% in 2025, 5% in 2024 and 20% in 2023, as lower oil prices led firms to prioritize shareholder returns and debt paydown over new output. That trend is now reversing: WTI crude prices are expected to rise in 2026, after three straight years of declines, amid supply disruptions tied to the war involving Iran.
Against that backdrop, the U.S. Energy Information Administration projects crude output will rise from a record 13.6 million barrels a day in 2025 to 13.8 million bpd in 2026. On the gas side, the agency projects output will jump from a record 107.7 billion cubic feet a day in 2025 to 111.3 bcfd in 2026, as demand for the fuel rises to generate electricity for data centers and to supply liquefied natural gas for export.
WTI crude traded at $84.65 a barrel as of June 15, according to the EIA, while Henry Hub gas stood at $3.06 per million British thermal units on the same date.
We reported last month that Algonquin gas trades below Henry Hub as Appalachia, Canada supply rises.
