February 24, 2025
The latest Baker Hughes rig count shows a significant boost in U.S. drilling activity, with Oklahoma adding five rigs, marking its highest count since May 2023. This increase contributed to a four-week uptrend, pushing the total U.S. rig count to 592, the highest since June 2024. While oil drilling saw a notable jump of seven rigs, natural gas rigs declined, reflecting ongoing market adjustments. Read on for key insights into state-by-state changes and what this means for future oil and gas production.
.This latest Baker Hughes rig count report highlights some key shifts in U.S. drilling activity:
Oklahoma Leads the Surge
- Oklahoma saw the biggest one-week increase in months, adding five rigs to reach 49 total, the highest since May 2023.
- This marks a notable year-over-year rise from 44 rigs in February 2024.
U.S. Rig Count Trends
- The total U.S. rig count rose by 4 to 592, continuing a four-week uptrend to its highest level since June 2024.
- Oil rigs increased by 7 to 488 (highest since September 2024).
- Gas rigs declined by 2 to 99, while miscellaneous rigs fell by 1 to 5.
- However, the U.S. rig count remains 34 rigs below last year’s 626, with a 15-rig drop in oil rigs and 21 fewer gas rigs.
State-Level Highlights
- Texas remained steady at 280 rigs.
- New Mexico dropped by 1 to 105 rigs.
- North Dakota (32 rigs), Louisiana (30 rigs), Colorado (9 rigs), Pennsylvania (15 rigs), Ohio (9 rigs), and Wyoming (20 rigs) were unchanged.
- Kansas lost 3 rigs, dropping to 12.
- West Virginia added 1 rig, reaching 11, the highest since August 2023.
- Utah dropped by 1 rig, now at 12.
Market Outlook
- Despite rig count fluctuations, U.S. crude production is expected to increase from 13.2 million bpd in 2024 to 13.6 million bpd in 2025 (EIA).
- Natural gas prices, projected to rise by 73% in 2025, could drive increased drilling activity following a 14% price drop in 2024.
- U.S. gas output is expected to rise to 104.6 bcfd in 2025, compared to 103.1 bcfd in 2024.
The data suggests a cautious but steady rebound in drilling activity, particularly for oil, while natural gas drilling remains suppressed for now. If gas prices surge as expected in 2025, we might see a stronger comeback in gas-directed drilling.
