In a sign of cautious optimism across the U.S. energy sector, drillers added oil and natural gas rigs for the second consecutive week — the first back-to-back gains since early February — according to the latest Baker Hughes weekly rig count released Friday. The total number of active rotary rigs climbed by two to 553 for the week ending March 13, 2026. This marks the highest U.S. rig count level seen since November 2025, though the figure remains down roughly 7% (or about 39 rigs) from the same time last year.The breakdown by type shows oil-directed rigs rising by one to 412 (their highest since early February), while gas-directed rigs also added one to 133. Miscellaneous rigs held steady at eight.
Rig Count Breakdown by Basin and State
Activity remains heavily concentrated in the major shale plays, with selective gains in gas-heavy areas:
Key Basins
Permian Basin (primarily oil): 241 rigs (flat week-over-week) — still the clear leader and backbone of U.S. output.
Haynesville Shale (primarily gas): 54 rigs (+1) — its highest level since May 2023, highlighting renewed interest in natural gas plays.
Eagle Ford (mixed oil/gas): 43 rigs (flat).
Marcellus (gas): 27 rigs (flat).
Williston Basin (Bakken) (primarily oil): 26 rigs (-1).
DJ-Niobrara: 10 rigs (+1).
Cana Woodford: 21 rigs (-1).
Utica: 12 rigs (flat).
Key States
Texas: 234 rigs (-2)
New Mexico: 101 rigs (+1)
Oklahoma: 44 rigs (-1)
Louisiana: 40 rigs (+4) — driven largely by Haynesville strength
North Dakota: 24 rigs (-1)
Pennsylvania: 20 rigs (flat)
Offshore Gulf of Mexico activity remained modest but contributed to the overall uptick.
U.S. Production Numbers Hold Near Record Levels
Despite the relatively stable (and now slightly rising) rig count, U.S. production continues to demonstrate remarkable efficiency. Weekly crude oil field production averaged approximately 13.67 million barrels per day in mid-March 2026, according to data from the U.S. Energy Information Administration (EIA), hovering near all-time highs. EIA forecasts call for U.S. crude output to average around 13.6 million b/d for full-year 2026, with modest growth possible into 2027 thanks to longer laterals, improved completion techniques, and optimized well designs.
Natural gas production also remains at record levels. Marketed natural gas output averaged 118.5 billion cubic feet per day (Bcf/d) in 2025, with contributions surging from the Permian, Appalachia, and Haynesville regions. Analysts project further growth to roughly 121 Bcf/d in 2026, supported by associated gas from oil plays and dedicated gas drilling.
Higher Prices Enable Debt Reduction, Disciplined Drilling, and Shareholder Returns
Elevated commodity prices are the clear catalyst behind the modest rig-count rebound. WTI crude has recently traded in the $95–$100+/bbl range (with Brent pushing even higher amid geopolitical supply concerns), while Henry Hub natural gas has offered improved economics in select basins.
Rather than triggering a drilling frenzy, these stronger prices are being deployed with the discipline that has defined the post-2020 era:
Debt reduction and balance-sheet strength: Many operators have already slashed leverage dramatically. Incremental cash flow is being directed first to further debt paydown or maintenance, keeping breakeven costs among the lowest globally (especially in the Permian and Eagle Ford).
High-return drilling programs: Capital is being allocated selectively to Tier-1 acreage with the best internal rates of return. Companies are squeezing more barrels per well through technology and longer laterals instead of simply adding rigs. 2026 capital expenditure guidance across the industry remains largely flat to modestly higher, with production growth expected to stay in the low-single-digit range.
Shareholder returns prioritized:
Major players and independents alike continue to emphasize dividends and share buybacks. Free cash flow at current prices is funding robust returns to investors rather than aggressive volume chasing.
This measured approach reflects hard-learned lessons from previous cycles: over-drilling quickly erodes pricing power. Today’s operators are focused on sustainable profitability.
How Investors Are Viewing Oil & Gas Companies
Wall Street is rewarding this capital discipline. Companies posting strong free-cash-flow yields, consistent dividend growth, and pristine balance sheets are seeing valuation premiums. Investors increasingly favor operators with:
Low-cost, core acreage positions (Permian and Eagle Ford leaders stand out)
Hedging programs that protect downside
Clear frameworks for returning capital rather than growth-at-all-costs
The modest rig-count increase — concentrated in high-return areas like the Haynesville — is being interpreted as a positive signal of confidence without the risk of oversupply. With global demand fundamentals supportive and U.S. production efficiency at historic highs, the sector offers an attractive risk-reward profile for energy investors seeking both yield and upside from commodity price strength.
Bottom line: The second straight weekly rig-count gain reflects a healthy, mature U.S. shale industry that is responding thoughtfully to better prices — prioritizing debt reduction, high-ROI drilling, and shareholder returns over boom-time expansion. Production remains resilient, and investors are taking notice.
Stay tuned to Energy News Beat for continuing coverage of rig activity, production updates, and what it all means for your energy portfolio.
Sources: Grok, X, Bakerhughes.com
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