US Energy Firms Add Rigs as Prices Projected to Rise

The US energy sector is showing signs of recovery after adding oil and gas rigs for the fourth week in a row, according to Baker Hughes' closely followed report. This marks the first time since September 2025 that drillers have consistently increased rig counts.

The total oil and gas rig count rose by three to 551 in the week ending May 15, its highest level since late March. Despite this increase, the overall count remains 25 rigs below last year's numbers, a decline of 4%. Oil rigs specifically saw an uptick of five to 415, their highest level since November 2025.

However, gas rigs fell by one to 128, their lowest point since mid-April. Miscellaneous rigs also declined by one to eight. The oil and gas rig count has been on the decline in recent years due to lower US oil prices, which led energy firms to prioritize shareholder returns and debt repayment over production increases.

But with projected rises in US West Texas Intermediate (WTI) crude spot prices for 2026, driven by expectations of an Iran war, the US Energy Information Administration (EIA) forecasts a slight increase in crude output from 13.6 million barrels per day (bpd) in 2025 to 13.7 million bpd in 2026.