North American Rig Count Falls to 690 as Canada Sheds 11 Units in Early April 2026

The North American rig count slipped to 690 in the week ending April 4, 2026, down six units from the prior week, according to the latest data from Baker Hughes. The decline marks a continued softening in drilling activity that has persisted through the first quarter as operators weigh volatile crude prices against capital discipline.

The United States accounted for 548 of the total, while Canada contributed 142. On a week-over-week basis, the U.S. land rig count rose by six, but this gain was offset by a one-unit drop in inland waters and an 11-unit decline north of the border, where Canada’s oil rigs fell by seven and gas rigs dropped by four.

U.S. Breakdown: Oil Rigs Hold, Gas Rigs Gain Year Over Year

Of the 548 active U.S. rigs, 411 were targeting oil, 130 targeted natural gas, and seven were classified as miscellaneous. By drilling type, 485 rigs were horizontal, 45 directional, and 16 vertical. Land rigs made up the vast majority at 536, complemented by 11 offshore rigs and one inland water unit.

Compared to the same period in 2025, the U.S. rig count is down 42 units overall. Oil rigs have dropped by 70, though this has been partially offset by a 26-rig increase in gas-directed drilling and two additional miscellaneous rigs. The shift toward gas reflects strengthening Henry Hub prices and growing demand from LNG export terminals ramping up along the Gulf Coast.

Canada’s Seasonal Pullback Deepens

Canada’s 142-rig total is 11 units below its year-ago level. The decline aligns with the typical spring breakup period, when thawing ground conditions restrict heavy equipment access to well sites across Alberta, British Columbia, and Saskatchewan. However, the drop is more pronounced than in recent years, raising questions about whether tariff uncertainty and a wider Western Canada Select (WCS) discount are compounding seasonal factors.

WCS for May delivery settled at $16.15 per barrel below WTI as of April 6, 2026, its widest discount since early 2024. This pressures netback revenues for Canadian producers, particularly those operating in the oil sands, and may dampen drilling plans for the remainder of the second quarter.

Crude Price Volatility Adds Uncertainty

The rig count data was compiled before the dramatic price swings triggered by the April 8 U.S.-Iran ceasefire announcement. WTI crude plunged more than 15% in a single session, falling from above $117 per barrel to roughly $95.50, the sharpest one-day drop since 2020. Brent crude fell by a similar margin to approximately $94.80.

While prices have since stabilized near the $95 to $100 range, the sudden reversal introduces fresh uncertainty for operators planning second-half drilling programs. Service companies such as Halliburton and Permian Basin continues to anchor U.S. drilling activity. Operators including ExxonMobil, Chevron, and ConocoPhillips have maintained their Permian rig fleets at near-capacity levels, leveraging efficiency gains from multi-well pad drilling and longer lateral lengths that reduce per-well costs.

ExxonMobil, which integrated Pioneer Natural Resources in 2024, is targeting 1.8 million barrels of oil equivalent per day from its Permian acreage in 2026, up from 1.6 million in 2025. Chevron reached its long-awaited milestone of one million barrels of oil equivalent per day in the Permian in Q4 2025.

Outlook

The next Baker Hughes rig count report, covering the week ending April 11, will be the first to capture operator sentiment following the ceasefire-driven price crash. Analysts expect the U.S. count to hold relatively steady in the near term, as most active rigs are operating under contracts that insulate service companies from short-term commodity swings. However, if WTI settles below $85 for an extended period, the industry could see a meaningful contraction by mid-summer.

Market participants will also watch the Strait of Hormuz shipping situation closely, as any disruption to the roughly 20% of global oil supply that transits the waterway could quickly reverse the recent price decline and reinvigorate North American drilling activity.