US drilling activity increased this week with Baker Hughes reporting 553 total active rigs, including 412 oil rigs (up 1) and 133 gas rigs (up 1), as Brent crude prices topped $100 per barrel for the first time in years. Despite the weekly gains, total rig count remains 39 below year-ago levels, with oil rigs down 75 from last year while gas rigs are up 33.
The modest rig additions come as operators balance higher oil prices against ongoing capital discipline, with many companies still maintaining conservative drilling programs despite improved commodity pricing. Natural gas drilling has shown more resilience, supported by growing demand from power generation and industrial sectors.
Meanwhile, power infrastructure investment is accelerating rapidly, with Atlas Energy announcing an $840 million acquisition of power assets from Caterpillar to build private grid infrastructure. The deal reflects surging electrical demand from data centers and manufacturing reshoring efforts, requiring billions in new generation and transmission capacity.
Utilities are racing to interconnect approximately 39 gigawatts of new data center and manufacturing load, according to the Edison Electric Institute. Major utilities including Duke Energy, Northern Indiana Public Service, and Xcel Energy are managing significant data center projects, highlighting the intersection of energy transition and digital infrastructure needs.
This power demand surge creates both opportunity and challenge for energy markets, as utilities must balance renewable energy goals with immediate capacity requirements, potentially extending the operational life of existing fossil fuel plants while accelerating grid modernization investments.