Why did U.S. energy firms cut rigs for the first time in eight weeks, and what does this indicate about current industry priorities?

U.S. energy firms cut the total oil and gas rig count by 1 to 562 for the week ending June 12 — the first decline in eight weeks — reflecting a continued strategic shift away from output expansion amid persistently lower U.S. oil prices; as stated in the body, firms have prioritized boosting shareholder returns and paying down debt rather than increasing production, a trend that contributed to rig count declines of 7% in 2025, 5% in 2024, and 20% in 2023.

What are the key trends in oil versus natural gas rig counts, and how do they relate to recent production records and future projections?

The number of oil rigs rose by 2 to 433 — the highest since June 2025 — while gas rigs fell by 3 to 121, the lowest since October 2025; despite the near-term rig count volatility, the U.S. Energy Information Administration (EIA) projects crude output will rise to 13.7 million barrels per day in 2026 from a record 13.6 million bpd in 2025, and natural gas output is expected to jump to 111.0 billion cubic feet per day in 2026 from a record 107.7 bcfd in 2025, driven by rising demand for electricity generation (especially for data centers) and LNG exports.

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US energy firms cut rigs for first time in eight weeks, Baker Hughes says

Jun 12, 2026

Baker Hughes reported U.S. energy firms cut rigs for the first time in eight weeks, while the EIA forecasts increased crude and gas output in 2026 driven by data center demand and LNG exports.

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