Baker Hughes US Rig Count Holds at 588 as Gas Rigs Rise 5 to Five-Week High; Texas Reaches 282, Highest Since February 2025

The U.S. rotary rig count held flat at 588 for the week ending August 28, per Baker Hughes data released Friday. Oil rigs fell by 5 to 447 while gas rigs rose by 5 to 132, the highest gas total in five weeks. The national count stands 52 rigs, or 9.7%, above the year-ago level of 536.

Texas added one rig to reach 282, the state's highest level since February 2025. The Permian Basin held steady at 267 rigs. Canada shed 5 units to close at 211, consistent with late-August seasonal softening ahead of Labour Day.

Gas Rigs Rise as Oil Rigs Retreat at $82.82 WTI

WTI crude settled at $82.82 per barrel on Friday's CME close, down 0.86% on the day. Brent crude traded at $88.10 per barrel on the ICE November 2026 front-month contract as of 16:08 ET Friday, per OilPrice.com. The November Brent at $88.10 less the October WTI close of $82.82 yields a cross-month differential of $5.28 per barrel.

On energy-equivalence terms, the oil-to-gas rig rotation does not reflect current spot economics. One barrel of WTI contains roughly 5.8 MMBtu of energy. At $82.82 per barrel and $2.81 per MMBtu Henry Hub (the September contract average since July 30, per the American Gas Association), oil carries an energy-equivalent value of $14.28 per MMBtu, more than five times Henry Hub's level. Operators adding gas rigs at these prices are positioning for LNG export demand and winter 2026 pricing, not current spot returns.

Permian at 267 Rigs: Parent-Company Context

The Permian Basin's 267 rigs account for 45.4% of all 588 active U.S. rigs, illustrating the formation's central role in the national drilling program. Our prior reporting on Permian rigs at 267 and ExxonMobil's Pioneer integration showed that integrated Pioneer acreage now generates record output of 1.8 MMboepd under ExxonMobil's XTO subsidiary management. That combination of high output per rig and steady basin activity explains why operators are holding Permian drilling programs even as national oil rig counts ease.

ConocoPhillips is a second major Permian operator, with its Concho Resources acquisition (2021) and CrownRock purchase (2024) anchoring its Delaware and Midland Basin footprints. Occidental holds the largest Permian acreage position, built in part from its 2019 Anadarko Petroleum acquisition. Diamondback Energy and Devon Energy round out the active mid-cap Permian presence. At $82.82 WTI, Permian operators maintain positive full-cycle returns, supporting the steady 267-rig program.

Haynesville and Gas Plays Lead the Week's Gains

Haynesville shale held 57 rigs this week, anchored by Comstock Resources and Expand Energy. Expand Energy is the entity formed from Chesapeake Energy's 2024 merger with Southwestern Energy. LNG export capacity expansions along the Gulf Coast continue to support long-term dry-gas demand from the Haynesville. Henry Hub September futures averaged $2.81 per MMBtu since becoming the prompt-month price on July 30, per the American Gas Association.

Eagle Ford held 50 rigs and the Williston Basin held 27. Two basins reported declines: DJ-Niobrara shed 1 rig to 10, and the Utica also fell by 1 to 10. Cana Woodford held at 20, Granite Wash at 19, and Marcellus at 24.

Multi-Year Trend: Recovery Within a Discipline Envelope

The 9.7% year-over-year rig gain comes against a backdrop of sustained capital restraint. U.S. rig counts declined 7% in 2025, 5% in 2024, and 20% in 2023, per Baker Hughes historical data. The current 588 total remains far below the 900-plus rigs operating in 2018. Efficiency gains, including longer laterals and improved completion designs, allow output records with fewer drilling units.

Last week's Baker Hughes report showed the first national rig decline in four weeks, a drop of 5 to 588. This week's flat hold shows that the prior week's decline was a composition change rather than a directional retreat. The oil-to-gas rotation reinforces that supply discipline remains intact for oil-directed activity heading into September.