US Rig Counts Down 3 This Week

The U.S. rotary rig count fell by three this week to 545 active rigs, according to the latest Baker Hughes North America Rig Count report released today. This marks a modest decline from 548 rigs the prior week (week ending April 2) and leaves the count 38 rigs (or roughly 6.5%) below year-ago levels.

The Baker Hughes rig count serves as a leading indicator of future oil and natural gas production, reflecting drilling activity across onshore and offshore plays. While the weekly drop is small, it continues a broader trend of restrained drilling activity as operators prioritize capital discipline, shareholder returns, and efficiency gains amid volatile commodity prices.

Oil vs. Gas Breakdown

Detailed oil/gas splits for the week ending April 10 were not immediately available in summary reports, but the prior week (April 2) showed:

Oil-directed rigs: 411 (up 2 week-over-week)
Gas-directed rigs: 130 (up 3 week-over-week)
Miscellaneous rigs: 7

This equates to roughly 75% oil-directed and 24% gas-directed activity, consistent with recent months where operators have focused on high-return oil plays.

Breakdown by State (Recent Trends)State-level data for the exact week ending April 10 is still being finalized in full reports, but recent weekly figures (late March/early April 2026) show the following distribution among leading states (approximate, based on consistent Baker Hughes tracking):Texas: ~231–233 rigs (dominant share, ~42% of U.S. total)
New Mexico: ~102 rigs
Oklahoma: ~44 rigs
Louisiana: ~39 rigs
North Dakota: ~28 rigs
Pennsylvania: ~18 rigs
Wyoming: ~15 rigs
Ohio: ~11 rigs

Texas and New Mexico together account for the vast majority of Permian Basin activity, underscoring the basin’s outsized role in national drilling.

Breakdown by Major Basin (Recent Trends)Major U.S. shale basins continue to concentrate activity in the most economically attractive plays. Approximate recent counts include:

Permian Basin (West Texas/New Mexico): ~240–242 rigs (primarily oil-directed; remains the clear leader despite year-over-year declines)
Haynesville Shale (Louisiana/Texas): ~54–56 rigs (gas-focused, showing relative strength)
Eagle Ford Shale (Texas): ~40–45 rigs (oil/gas mix)
Williston Basin (Bakken – North Dakota/Montana): ~28–31 rigs
Marcellus Shale (Pennsylvania/Ohio/West Virginia): ~25–26 rigs (gas)
Other notable: Cana-Woodford (Oklahoma) ~24 rigs; Niobrara (Colorado/Wyoming) lower double-digits

The Permian continues to represent nearly half of all U.S. land rigs, highlighting operators’ focus on core acreage with the strongest returns. Offshore Gulf of Mexico rigs remain a small but steady component of the total count (typically 15–20 rigs in recent months).

Occidental Petroleum’s New Offshore Discovery

In a positive development for U.S. offshore potential, Occidental Petroleum (Oxy) announced on April 9 an oil discovery at the Bandit prospect in the Gulf of Mexico (Green Canyon Block 680), approximately 125 miles south of the Louisiana coast.

The exploratory well encountered high-quality, full-to-base oil-bearing Miocene sands. Oxy operates the prospect with a 45.375% working interest; partners include Chevron (37.125%) and Woodside Energy (17.5%). The discovery sits near existing infrastructure, raising the potential for subsea tie-backs to adjacent Oxy-operated facilities or other nearby platforms, which could accelerate development and lower costs.

Oxy and its partners are evaluating results to determine next steps. This find underscores continued interest in deepwater Gulf exploration even as onshore rig counts remain subdued, offering a potential boost to long-term U.S. offshore reserves and production.

Outlook

The modest three-rig decline signals cautious operator behavior, but U.S. oil and gas production has remained resilient thanks to longer laterals, improved completion techniques, and efficiency gains. The Permian’s dominance and the new Gulf discovery suggest that while drilling activity is lean, strategic investment in premium assets continues.

Energy News Beat will continue monitoring Baker Hughes reports and operator updates as full basin-by-basin details for this week become available.

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