Investing.com -- US energy companies increased their drilling activity this week, marking the sixth addition in seven weeks, according to Baker Hughes (NYSE: BKR) data released Friday.

The combined oil and gas rig count rose by one to 588 in the week ending July 31. The figure now stands 48 rigs, or 9%, higher than the same period last year.

Oil rigs increased by one to 451 this week, reaching their highest level since mid-July. Gas rigs remained unchanged at 127, while miscellaneous rigs stayed at 10.

The oil and gas rig count had fallen 7% in 2025, 5% in 2024, and 20% in 2023 as lower US oil prices led energy companies to prioritize shareholder returns and debt reduction over production growth.

US West Texas Intermediate crude prices are expected to rise in 2026 due to supply disruptions from the Iran war, following declines in 2023, 2024, and 2025. The US Energy Information Administration projects crude output will increase from a record 13.6 million barrels per day in 2025 to 13.8 million barrels per day in 2026.

The EIA also forecasts natural gas production will climb from a record 107.7 billion cubic feet per day in 2025 to 111.3 billion cubic feet per day in 2026, driven by rising demand for electricity generation at data centers and liquefied natural gas exports.