US Oil and Gas Rigs Cut for Third Time in Four Weeks
US energy firms cut oil and gas rigs for the third time in four weeks, according to Baker Hughes' latest report. The oil and gas rig count fell by three to 545 in the week ending April 10, its lowest since late March.
The decline puts the total rig count down 38 from this time last year, a drop of about 7%. Oil rigs held steady at 411, while gas rigs dropped by three to 127, their lowest since late March. Miscellaneous rigs remained unchanged at seven.
In the Gulf of Mexico, the rig count rose by three to 13, its highest since December 2024. This is in contrast to a decline of about 7% in 2025 and 5% in 2024, as lower US oil prices prompted energy firms to focus on shareholder returns and debt repayment over increasing output.
TD Cowen predicts that 18 exploration and production companies it tracks will spend around 1% less on capital expenditure in 2026 than the previous year. This follows a decline of about 4% in 2025, flat spending in 2024, and increases of 27% in 2023, 40% in 2022, and 4% in 2021.