US Energy Firms Add Oil and Gas Rigs for Second Week in a Row

US energy firms added oil and gas rigs for the second week in a row, marking the first time since mid-March that they've done so. According to Baker Hughes' closely followed report, the total rig count rose by three to 547 in the week ending May 1, its highest level since early April.

The increase was driven by oil rigs, which rose by one to 408, their highest level since mid-April. Gas rigs also saw an uptick, increasing by one to 130, while miscellaneous rigs rose by one to nine. The Haynesville shale in Louisiana and Texas saw a notable gain, with the rig count rising by two to 58, its highest level since May 2023.

Despite this week's increase, Baker Hughes noted that the total rig count is still down 37 rigs from last year, representing a 6% decline. The oil and gas rig count has declined in each of the past three years due to lower US oil prices, which have prompted energy firms to focus on boosting shareholder returns and paying down debt rather than increasing output.

Looking ahead, financial services firm TD Cowen predicted that exploration and production companies will spend about the same on capital expenditures in 2026 as they did in 2025. This is a decline from 2023's increase of 27% but an improvement from 2024's flat year-on-year spending.