Baker Hughes US Rig Count Falls to 598 as Gas Drilling Retreats from 3-Year High and WTI Settles at $91.11
US drilling rigs slipped to 598 as gas rigs fell for the second straight week from a 3-year high, even as WTI crude settled at $91.11 Friday.
Baker Hughes counted 598 active US oil and gas rigs for the week ending October 3, 2026, down one from 599 the prior Friday. Oil rigs climbed one to 456 while gas rigs fell two to 133, and miscellaneous rigs held at nine. Frac spreads reached 195, their third straight weekly gain, signaling completion crews remain busy even as the headline rig count eased. The total count year-over-year stands 49 rigs above the 549 active the same week in 2025.
Gas Drilling Retreats for Second Straight Week
The 133 active gas rigs this week mark two consecutive weeks of decline from a three-year high. Oil Authority reported 134 gas rigs on September 18, the highest count since 2023. Since then, gas rigs have shed one per week for two straight weeks. The CME Henry Hub prompt-month contract settled near $2.93 per MMBtu in late September, per EIA spot data. At sub-$3 Henry Hub, operators with unhedged gas exposure face shrinking half-cycle returns and limited incentive to add rigs heading into winter.
Permian Basin Holds at 270; Eagle Ford Slips Again
The Permian Basin held at 270 rigs for the second consecutive week, reinforcing its role as the foundation of US tight-oil activity. XTO Energy, ExxonMobil's unconventional subsidiary, and ConocoPhillips, which integrated Concho Resources into its Permian operations after its 2021 acquisition, together drive a large share of the basin's rig demand. The Eagle Ford dropped one rig to 49, its second straight weekly decline. Devon Energy and Marathon Oil carry the two largest public-company Eagle Ford programs.
Per-Rig Production Efficiency Has Risen Sharply Year-Over-Year
The year-over-year gain of 49 rigs has coincided with a 450,000 barrel-per-day increase in US crude output, which the EIA estimates at 13.955 million bpd. That works out to roughly 9,184 bpd of incremental production per additional rig, above the 6,000 to 7,000 bpd per rig logged during the 2016 to 2019 shale build-out. Longer laterals, higher proppant loads, and pad drilling in the Midland sub-basin account for most of that improvement. More production per rig also means the US supply response to price changes is less elastic than it was a decade ago.
WTI Settles at $91.11, Compressing Unhedged Economics
WTI crude settled at $91.11 per barrel on Friday's CME close, down 1.9 percent on the day. One week earlier, when the count hit 599, its highest since May 2024, WTI stood at $92.41, per the September 26 Oil Authority rig count report. At $91.11, unhedged single-well economics in the Permian sit below the $95 to $97 breakeven band most operators cite at current well costs. Oil rigs rose by one despite the price decline, suggesting capital programs were too committed to reverse in a single week.
Offshore Activity Down Five Rigs Year-Over-Year
US offshore drilling counted 10 active rigs this week, five fewer than the same period last year. Gulf of Mexico operators have redirected capital budgets toward development wells and tiebacks on existing infrastructure rather than standalone exploration programs. The offshore decline contrasts with the 49-rig onshore year-over-year gain and reflects the longer investment cycle between deepwater development and land tight-oil programs.
Published by Oil Authority, edited by Adam Humphreys
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