North American drilling activity witnessed a significant uptick this past week, signaling renewed confidence or strategic shifts among producers. As of May 22, the continent’s total rotary rig count climbed by 21 units week-over-week, reaching an aggregate of 696 operational rigs. This surge offers critical insights for investors tracking capital expenditure and future production trends across the vital oil and gas sectors.
U.S. Drilling Momentum Builds
The United States contributed notably to this continental increase, adding seven rigs to bring its total to 558. A closer examination reveals the granular movements within this crucial energy landscape. Land-based operations remain the dominant force, with 536 rigs working on shore. Offshore activity also saw a modest rise, adding two rigs for a total of 19, while inland water operations held steady at three rigs. These figures underscore the continued importance of onshore shale plays in the nation’s energy strategy.
Analyzing the U.S. rig composition further, we observe a clear emphasis on oil-directed drilling. Oil rigs increased by 10 units week-over-week, now totaling 425. Conversely, natural gas rigs experienced a slight contraction, shedding three units to settle at 125. Eight miscellaneous rigs remained active. This divergence highlights a prevailing focus on crude oil production, likely influenced by market demand and pricing dynamics. Furthermore, horizontal drilling, a hallmark of unconventional resource development, saw an addition of two rigs, reaching 486. Directional rigs also rose by two, while vertical rigs increased by three, indicating a diverse, albeit predominantly horizontal, approach to wellbore construction.
Regional Spotlights: Texas Leads, Permian Stays Strong
Geographic shifts within the U.S. rig count provide crucial details for regional investors. Texas, a perennial powerhouse in energy production, led state-level gains by adding 10 rigs. This robust expansion in Texas often correlates with heightened activity in its prolific basins. In contrast, New Mexico experienced a reduction of three rigs. From a basin perspective, the Permian Basin, North America’s premier shale play, continued its growth trajectory by adding four rigs, reinforcing its status as a magnet for upstream investment. The Eagle Ford and Cana Woodford basins each gained two rigs, indicating focused development in these regions. Conversely, the Barnett and Haynesville basins each saw a decrease of one rig, suggesting some operators are reallocating capital or completing current drilling programs.
Canada’s Vigorous Expansion
North of the border, Canada demonstrated an even more vigorous expansion, boosting its rig count by 14 units to reach 138. Canadian operations currently consist of 87 oil rigs, 48 gas rigs, and three miscellaneous rigs. The surge was primarily driven by oil-focused drilling, with an addition of 11 oil rigs, alongside a three-unit increase in miscellaneous rigs. This strong Canadian performance reflects increasing confidence among producers in the Canadian energy market, potentially driven by stable commodity prices or strategic infrastructure developments.
Year-over-Year Perspective: A Shifting Landscape
Comparing current drilling levels to those of a year ago reveals significant strategic adjustments across North America. The total North American rig count stands 16 units higher than year-ago levels, indicative of overall sector recovery and growth. However, this growth is not uniform. The U.S. actually operates with eight fewer rigs year-over-year, showcasing a more cautious approach to expansion, or perhaps a focus on efficiency over sheer volume. Within the U.S., a notable shift is apparent: oil rigs have declined by 30 units annually, while gas rigs have increased by 17, and miscellaneous rigs by five. This rebalancing suggests a strategic pivot towards natural gas production within the U.S. Canada, on the other hand, has been a key driver of year-on-year growth, adding 24 rigs. Its annual gains include 16 oil rigs, five gas rigs, and three miscellaneous rigs, demonstrating broad-based growth across its energy resource base.
Navigating Recent Volatility: A Turn in the Trend?
This latest surge follows a period of fluctuating activity. The preceding week, ending May 15, saw North America add three rigs, comprising three U.S. rigs and no change in Canada. Prior to that, the week of May 8 recorded a two-rig increase for North America. However, these small gains emerged after a series of declines. North America experienced a four-rig drop by May 1 and a modest one-rig addition by April 24. Earlier, the continent witnessed substantial weekly losses: seven rigs by April 17, 10 rigs by April 10, six rigs by April 2, a significant 33 rigs by March 27, 21 rigs by March 20, six rigs by March 13, eight rigs by March 6, and 11 rigs by February 27. The current upswing, particularly the robust Canadian contribution, marks a potential inflection point after this period of contraction, suggesting operators are re-evaluating their drilling schedules in response to market signals.
Long-Term Trajectory: Recovery and Adaptation
Reviewing historical monthly rig count data provides invaluable context for the current environment. The May 2026 North American rig count of 678, for instance, sits below the 679 in April 2026 and further below the 733 recorded in March 2026. Looking back to February 2026, the count stood at 773, followed by 742 in January 2026, and 718 in December 2025. This shows a downward trend in early 2026 leading into the current period.
Further analysis of the recent past reveals dynamic shifts in drilling intensity. In November 2025, the count reached 739, holding relatively steady from October’s 741. September 2025 saw 728 rigs, August 717, and July 707, demonstrating gradual growth through mid-2025. May 2025’s 690 rigs are close to the current levels, indicating a plateau and subsequent fluctuation in activity over the last year. However, earlier in 2025, drilling was significantly more robust, with 786 rigs in March and a peak of 836 in February, before declining to 791 in January 2025. These figures suggest a softening of drilling enthusiasm through 2025, which investors must consider when evaluating current market conditions.
Delving deeper, 2024 presented a largely higher activity landscape compared to today. December 2024 closed at 751 rigs. November saw 789, while October, September, and August consistently held at 804 rigs. July 2024 recorded 779 rigs, June 750, and May 722. The year began with strong numbers: 748 in April, 822 in March, 855 in February, and 818 in January 2024. This historical perspective illustrates that current rig counts, while showing recent weekly gains, remain below the average activity levels seen through much of 2024.
The pre-pandemic years and the subsequent recovery offer a stark comparison. In 2023, the industry maintained considerably higher activity, with monthly averages often exceeding 800 rigs, peaking at 1,006 in February and 998 in January. This trend continued into 2022, which saw counts frequently in the 900s, hitting 981 in October and 980 in November. This period marked a significant rebound from the depths of the 2020 downturn, where the North American rig count plummeted to an astounding low of 288 in July 2020. The current 696 rigs, while a recovery from those extreme lows, are still a far cry from the robust activity observed in the years immediately preceding and during the earlier stages of the post-pandemic recovery, signaling a more disciplined or constrained capital environment. Tracking these fluctuations allows investors to gauge the health and forward-looking sentiment of the drilling sector.
Since 1944, rig count data has served as a vital barometer for the petroleum industry and its expansive supply chain. These figures, supported by granular working rig location information, offer a transparent view into the operational heartbeat of the global energy sector, providing crucial intelligence for investment decisions in oil and gas production, equipment, and services.