April 14, 2025
The U.S. oil and gas sector faced a notable setback this week as the national rig count dropped by seven, bringing the total to 583 active rigs—the lowest level since early 2022. According to the latest Baker Hughes report, oil rigs experienced the steepest single-week decline since June 2023, falling by nine to 480. While gas rigs saw a slight uptick, the overall trend reflects a cautious stance by operators amid weaker oil prices, shifting market dynamics, and growing geopolitical uncertainty.
Here’s a concise summary of the latest U.S. oil and gas rig activity, based on the Baker Hughes rig count for the week ending April 11, 2025:
🛠️ National Rig Count Summary
- Total U.S. Rig Count: 583 (▼ 7 from last week)
- Year-over-Year Change: ▼ 34 rigs (−6% from 617 rigs last year)
- Oil Rigs: 480 (▼ 9) — largest weekly drop since June 2023
- Gas Rigs: 97 (▲ 1)
- Miscellaneous Rigs: 16 (▲ 1)
- Offshore Rigs: 13 (▼ 1)
📍 Top Producing States
| State | Current Count | Weekly Change | YoY Change |
|---|---|---|---|
| Texas | 274 | ▼ 3 | — |
| New Mexico | 100 | ▼ 1 | — |
| Oklahoma | 53 | ➖ | ▲ 9 |
| North Dakota | 32 | ➖ | — |
| Louisiana | 30 | ➖ | — |
| Pennsylvania | 16 | ▲ 1 | — |
| Wyoming | 21 | ➖ | — |
| Ohio | 10 | ➖ | — |
| Alaska | 10 | ➖ | — |
| Utah | 12 | ➖ | — |
| Colorado | 8 | ➖ | — |
| California | 6 | ▼ 2 | — |
| West Virginia | 9 | ▼ 2 | — |
🛢️ Permian Basin Update
- Rig Count: 289 (▼ 5) — Lowest since Dec 2021
- April Oil Production Forecast: 6.51 million bpd (▼ from 6.57 million bpd in March)
🔍 Macro Commentary
- This marks the third consecutive weekly decline in rig activity, driven by oil price pressures and a strategic shift by operators toward shareholder returns over production growth.
- The Permian Basin is seeing output contraction and rig pullback despite being the top U.S. oil-producing region.
- On the gas side, a projected 95% increase in spot prices in 2025 (per EIA) is expected to stimulate a rebound in drilling after a downturn in 2024.
As oil prices remain under pressure and geopolitical risks cloud the global outlook, U.S. operators continue to scale back drilling activity, prioritizing financial discipline over aggressive expansion. The recent decline in rig counts—especially in the Permian Basin—signals a measured approach to production, even as long-term demand for both oil and natural gas is expected to grow. With market volatility likely to persist, timely rig data and operational insights will be critical for staying ahead in today’s dynamic energy landscape.
