April 28, 2025

U.S. drilling activity showed a modest rebound this week, with energy firms adding rigs for the second consecutive week — the first such streak since February 2025. According to the latest Baker Hughes report, the total number of active oil and gas rigs rose by two to 587, although overall rig activity remains below last year’s levels. The industry continues to navigate a challenging environment shaped by lower commodity prices, rising construction costs due to tariffs, and a growing emphasis on shareholder returns over production growth. Notably, Oklahoma led the gains with an increase of two rigs, while other major producing states such as Texas and New Mexico remained steady.

U.S. Rig Count Summary — Week Ending April 25, 2025

🇺🇸 Overall U.S. Rig Count

Total Rigs: 587
Change from Last Week: +2 rigs
Change from Last Year: -26 rigs (-4% YoY decline)
- Last year same time: 613 rigs
Breakdown:
- Oil rigs: 483 (+2 from last week)
- Gas rigs: 99 (+1 from last week)
- Miscellaneous rigs: 5 (-1 from last week)
Rig Location:
- Land: 571 rigs
- Inland waters: 3 rigs
- Offshore: 13 rigs (unchanged)

📍 State-Specific Rig Counts

State	Current	Change vs Last Week	Change vs Last Year	Notes
Texas	274	0	—	No weekly change
New Mexico	100	0	—	No weekly change
North Dakota	32	0	—	No weekly change
Oklahoma	55	+2	+10	Granite Wash play gain
Louisiana	30	0	—	No weekly change
California	6	+1	—	Up by 1
Kansas	21	-3	—	Red Top Rig Report source
Colorado	8	0	—	No weekly change
Ohio	12	0	—	No weekly change
Pennsylvania	18	0	—	No weekly change
Utah	11	-1	—	Down by 1
West Virginia	8	0	—	No weekly change
Wyoming	21	0	—	No weekly change
Alaska	10	0	—	No weekly change

📉 Broader Industry Context

April 2025 Monthly Change:
- Total rigs fell by 5 rigs
- Oil rigs dropped by 1; gas rigs dropped by 4
2024 Trend:
- Rig count down ~5% in 2024 YTD
- Down 20% during 2023
Reasons for Rig Count Decline:
- Lower oil and gas prices
- Focus on shareholder returns and debt repayment
- Higher construction costs due to steep tariffs
- Small shale producers slowing drilling due to low crude prices
Service Company Outlook:
- Baker Hughes and Halliburton both reported lower revenue due to reduced drilling and tariff impact.
- Baker Hughes revised their 2025 U.S. and Canadian energy firm spending outlook to a low double-digit decline, worse than their previous mid-single digit forecast.

🔥 Key Takeaways

This week marks the second week in a row of rig count growth — first time since February 2025.
Oklahoma is a bright spot with +10 rigs YoY.
Texas and New Mexico, the largest basins, remain flat week-over-week.
Broader rig activity remains soft overall, signaling cautious capital spending amid uncertain commodity prices and tariffs.