The U.S. oil and gas rig count increased for the eighth time in nine weeks, signaling renewed drilling activity as producers respond to stronger energy demand and improving production expectations.

Key Highlights

  • Total U.S. oil and gas rigs increased by one to 563, the highest level recorded since early June.
  • Natural gas rigs rose by one to 122, while oil-directed rigs remained unchanged at 433.
  • The overall rig count stands 2% above the level reported during the same period last year.
  • Federal forecasts project U.S. crude oil and natural gas production to reach new records in 2026.

U.S. energy producers expanded drilling activity again this week, extending a recent trend of rising rig additions that suggests growing confidence in future oil and natural gas demand. Industry data showed the total number of active oil and gas rigs climbed to its highest level in several weeks, marking the eighth increase over the past nine reporting periods.

The total rig count increased by one unit to 563 during the week ended June 18. While oil-focused drilling activity remained steady, natural gas operators added another rig, pushing gas-directed activity to its strongest level since the beginning of the month.

The latest increase places the overall rig count modestly above year-ago levels. The data contrasts with the declines seen over the previous several years, when lower commodity prices encouraged producers to prioritize debt reduction, shareholder returns, and capital discipline rather than aggressive production growth.

Natural gas drilling has received additional support from expectations of rising demand. Expanding electricity consumption from artificial intelligence infrastructure and data centers is expected to increase gas-fired power generation requirements. At the same time, growing exports of liquefied natural gas continue to strengthen long-term demand prospects for U.S. producers.

Government energy forecasts indicate domestic oil production could reach another record next year. Official projections anticipate crude output increasing from already elevated levels in 2025, supported by stronger prices and continued productivity improvements across major shale regions.

Natural gas production is also expected to rise meaningfully in 2026. Forecasts call for output to establish a new record as producers respond to expanding domestic consumption and international LNG demand.

The recent recovery in drilling activity comes after several years of contraction across the U.S. energy sector. Lower oil prices contributed to successive annual declines in active rig counts, prompting operators to reduce spending and focus on financial performance rather than volume growth.

While the latest increase was relatively small, the broader trend suggests energy companies are becoming more willing to deploy capital in anticipation of stronger market conditions. Investors and industry participants often view rig counts as an early indicator of future production trends because drilling activity typically precedes increases in oil and gas output.