US Rig Count Climbs for Third Straight Week, Hits 580 Ahead of July 4th
According to a Reuters report carried by BOE Report, U.S. energy firms added rigs for a third consecutive week, with Baker Hughes reporting the total oil and gas rig count rose by seven to 580 in the week to July 2, its highest level since May 2025.
Baker Hughes released the report a day earlier than usual due to the U.S. July 4th holiday, observed this year on Friday, July 3. The increase puts the total rig count up 41 rigs, or 7.6%, above this time last year. Oil rigs climbed by five to 445, their highest since late May 2025, while gas rigs rose by one to 126, their highest since mid-May 2026. Miscellaneous rigs increased by one to nine.
Market Impact
The rig count had declined 7% in 2025, 5% in 2024, and 20% in 2023 as producers prioritized shareholder returns and debt paydown over output growth. That trend is reversing: with WTI prices expected to rise in 2026 on supply disruptions tied to the Iran war, the U.S. Energy Information Administration projects crude output will climb from a record 13.6 million barrels per day in 2025 to 13.7 million bpd in 2026. On the gas side, EIA projects output will jump from 107.7 billion cubic feet per day in 2025 to 111.0 bcfd in 2026, driven by power-hungry data centers and rising LNG export demand.
What It Means for Subcontractors
- Three consecutive weeks of rig additions is a meaningful demand signal after two years of contraction — wellsite construction, completions, and drilling fluid crews should expect bid activity to firm up through July.
- Oil-directed additions (five of the seven new rigs) point to renewed activity in Permian-adjacent basins; crews with oil-side exposure are positioned first for follow-on work.
- The parallel gas rig increase, tied to data center power demand and LNG export growth, signals opportunity for contractors serving gas-directed plays alongside the oil-side gains.
- Field service companies should lock in crew and equipment availability now — a third straight week of gains suggests operators are committing to sustained programs rather than one-off additions.
