US Energy Firms Ramp Up Rig Count Amid Iran War Disruptions
US energy firms added rigs for the sixth time in seven weeks, according to Baker Hughes' latest report. The total oil and gas rig count rose by one to 588 in the week to July 31, marking a significant increase from this time last year.
The current rig count is up 48 rigs, or 9%, compared to the same period in 2025. Oil rigs saw an increase of one to 451, their highest level since mid-July, while gas rigs held steady at 127 and other miscellaneous rigs remained at 10.
In the Eagle Ford shale in South Texas, the rig count rose by two to 49, its highest point since March 2025. Conversely, the Utica rig count fell by one to 11, its lowest level since May 2025. The EIA projects a rise in crude output from 13.6 million barrels per day (bpd) in 2025 to 13.8 million bpd in 2026.
The projected increase is attributed to supply disruptions caused by the Iran war, which is expected to drive up US West Texas Intermediate (WTI) crude prices. On the gas side, output is anticipated to jump from a record 107.7 billion cubic feet per day (bcfd) in 2025 to 111.3 bcfd in 2026 as demand for LNG and electricity production rises.