The oilfield services upcycle is unlikely to begin before 2027 because global markets must first absorb spare capacity, convert LNG and power infrastructure investments into sustained drilling demand, and force deferred upstream projects back onto the table. When that tightening occurs, the inflection will be driven by utilization and pricing power — not rig count — marking a true economic upcycle rather than a short-term activity bounce.

U.S. drilling activity continues to soften. The U.S. rig count fell by two this week to 544 active rigs in the Baker Hughes report dated January 11, 2026, remaining 40 rigs below last year’s level.

Baker Hughes (NASDAQ: BKR) is reshaping its business once again—this time through a bold acquisition of Chart Industries (NASDAQ: GTLS). The $13.6 billion deal marks one of the company’s largest strategic shifts in years, signaling a move away from its historic dependence on oilfield services toward a broader energy technology platform.

Nationally, the U.S. rig count ticked up to 548, with 418 oil rigs, 121 gas rigs, and 17 offshore platforms — a sign of slow but durable recovery heading into winter.

crude prices fell below $60 per barrel, underscoring continued pressure on drilling economics. According to the latest Baker Hughes Rig Count, both oil prices and rig activity moved lower — signaling operators may be tightening spending as commodity markets soften heading into Q4 2025.

The U.S. drilling market continues to “eek out” progress, stringing together modest week-over-week increases. Gains remain uneven—Texas is slipping while Colorado, Kansas, and Wyoming are seeing growth. Gas rigs continue to provide stability, while oil rigs drive incremental weekly gains.

The U.S. oil and gas rig count inched higher last week, marking the second consecutive weekly gain—a rare streak in 2025. According to the latest Baker Hughes data, the total rig count climbed to 539 active rigs, up two from the prior week.

The oil and gas sector may be facing daily volatility—just look at the XOP energy ETF, which recently suffered its worst daily performance since early August—but Baker Hughes continues to carve out a strong position in the global energy transition. Under the leadership of CEO Lorenzo Simonelli, the company is strategically diversifying beyond traditional oilfield services and leaning into long-term growth themes: natural gas, LNG exports, digital efficiency, and the rise of power-hungry data centers.

The U.S. drilling landscape continues to show signs of strain as the Baker Hughes rig count slipped by two last week, leaving 536 rigs active nationwide.

Baker Hughes released its latest rig count on Friday, showing a slight pullback in U.S. drilling activity. The total U.S. rig count slipped by one to 538, as oil rigs declined while gas rigs held steady.