Baker Hughes reports that US energy companies have cut back on drilling for the first time in four-weeks.

Baker Hughes, a 'closely watched' energy services firm, said in its report on Friday that U.S. firms have lowered the number of operating rigs for the first four weeks.

The number of oil and gas drilling rigs, a good indicator of future production, dropped by five in the week ending August 21. Baker Hughes stated that the total count is still up by 50 rigs or 9.3% from last year. Baker Hughes said oil rigs dropped by three this week to 452, while gas rigs decreased by one to 128, and miscellaneous or other rigs by one to 9. The rig count in the 'Permian', America's largest oil-producing shale region, has risen by two, to 267. This is the highest since June 2025. The Eagle Ford shale, located in South Texas has seen its rig count rise by one, to 50. This is the highest level since June 2024. Texas, the?state with the most rigs', saw its rig count rise by four, to 281, which is the highest since February 2025. Oil and gas rig counts declined by 7% in 2025, 5% in 2024 and 20% in 2030 as energy firms focused more on increasing shareholder returns and paying down debt than increasing production. Spot U.S. West Texas intermediate crude prices 'are expected to increase in 2026 - due to disruptions in supply in the Middle East caused by the Iran War after falling in 2023,2024 and 2025. Noel John, reporting from Bengaluru; Editing by Franklin Paul & David Gregorio

(source: Reuters)