Key insights
- US oil and gas rig count declined for the second consecutive week, signaling potential future production slowdowns. Energy companies are prioritizing shareholder returns and debt reduction over expansion, leading to reduced capital expenditures. This trend could moderately pressure energy sector earnings and investment in the short term.
Investing.com -- U.S. energy companies reduced the number of active oil and natural gas rigs for a second consecutive week, marking the first back-to-back decline since March, according to data released Friday by energy services firm Baker Hughes (NYSE:BKR).
The total rig count fell by two to 543 during the week ending April 17, reaching its lowest level since late March. The current count stands 42 rigs, or 7%, below the same period last year.
Oil rigs decreased by one to 410 this week, their lowest since late March. Natural gas rigs dropped by two to 125, the lowest since January, while miscellaneous rigs increased by one to eight.
The rig count has declined 7% in 2025, following a 5% drop in 2024 and a 20% decrease in 2023. Lower U.S. oil prices have led energy companies to prioritize shareholder returns and debt reduction over production expansion.
TD Cowen reported that exploration and production companies it tracks plan to reduce capital expenditures by approximately 1% in 2026 compared to 2025. This follows a 4% decline in 2025, flat spending in 2024, and increases of 27% in 2023, 40% in 2022, and 4% in 2021.
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