Baker Hughes US Rig Count Falls to 545 for Third Decline in Four Weeks, Permian Holds at 241 Active Rigs

The United States active drilling rig count declined to 545 in the week ending April 10, 2026, according to the latest weekly report from Baker Hughes, marking the third reduction in four weeks and underscoring a pattern of capital restraint among North American operators despite soaring crude prices driven by the Strait of Hormuz supply crisis.

Total US oil rigs held unchanged at 411, while natural gas rigs fell three to 127, their lowest level since late March. Miscellaneous rigs remained at seven. The headline count is down 38 rigs, or approximately 7 percent, compared to the same period in 2025, reflecting a broader industry shift toward capital discipline over volume growth.

Gulf of Mexico Activity Strengthens

Not all segments of the US drilling market softened. Gulf of Mexico offshore rigs rose by three to 13, the highest level recorded since December 2024. Deepwater and shelf projects operate on longer investment cycles and are less sensitive to weekly commodity price swings, making them more resilient during periods of near-term crude price volatility.

The Gulf of Mexico improvement contrasts with the onshore picture, where operators have stayed cautious despite WTI briefly surging to $105 per barrel earlier this month when the Trump administration announced a blockade of Iranian oil exports through the Strait of Hormuz. As of Tuesday, WTI had retreated to approximately $92 per barrel as markets weighed renewed diplomatic contact between Tehran and Washington, reflecting the uncertainty that makes operators reluctant to accelerate spending based on price spikes they view as potentially temporary.

E&P Capital Budgets Signal Restraint Through 2026

The sustained decline in active rigs reflects investment decisions made earlier this year, when major exploration and production companies finalized 2026 budgets based on price assumptions well below the Hormuz-driven highs. A survey of 36 tracked E&P companies shows collective 2026 capital investment of approximately $59.1 billion, down 5 percent from $62.5 billion spent in 2025.

TD Cowen analysis of 18 tracked E&P companies found a similar pattern, with those companies planning roughly 1 percent less capital expenditure this year than in 2025. Among individual operators, Diamondback Energy announced a 7 percent budget reduction, EOG Resources cut 5 percent, and Devon Energy trimmed 4 percent, each citing a more conservative medium-term price outlook and a preference for shareholder returns over production growth.

The U.S. Energy Information Administration projects US crude oil production will average 13.5 million barrels per day in 2026, roughly 100,000 barrels per day below the 2025 average, consistent with the restrained investment environment across the broader US upstream sector.

Permian Basin Leads, Eagle Ford Gains Momentum

The Permian Basin in West Texas and southeastern New Mexico continues to anchor US drilling activity. With approximately 241 active rigs, the Permian accounts for roughly 44 percent of all US drilling. The basin commands this position because of its low breakeven costs, extensive pipeline and midstream infrastructure, and the ability of large operators to sustain throughput even as they reduce rig counts through efficiency improvements and longer horizontal laterals.

Among other key basins, Eagle Ford added three rigs week-over-week, while Haynesville and Cana Woodford each posted a gain of one. Oilfield services providers including Halliburton remain concentrated in the Permian, where demand for hydraulic fracturing and completion services stays relatively robust even as overall rig counts moderate.

Canada Spring Breakup Weighs on North America Total

At the North America level, the total active rig count stood at 690 as of the April 2 Baker Hughes report, comprising 548 US rigs and 142 Canadian rigs. Canada declined 11 rigs week-over-week, consistent with the annual spring breakup period when thawing ground conditions restrict access to well sites across the Western Canadian Sedimentary Basin from late March into May.

The seasonal disruption is temporary and does not reflect a structural change in Canadian industry activity. Operators typically resume drilling programs in earnest once provincial road bans are lifted in late spring. Western Canadian Select heavy crude continues to trade at approximately a $12 per barrel discount to WTI, broadly in line with the Alberta Energy Regulator forecast for 2026, with the Trans Mountain Expansion pipeline providing enhanced Pacific market access for oil sands producers.

The next Baker Hughes rig count report covering the week ending April 11 will be released on Friday, April 17. Analysts will watch for early signals of whether the price retreat from the Hormuz-driven WTI peak is sufficient to prompt further reductions in active rigs entering the second quarter.