January 13, 2025
The latest Baker Hughes rig report, released on January 10, 2025, indicates a drop in U.S. oil and natural gas drilling activity for the first time in six weeks. The rig count, a key barometer of future production levels, fell by five rigs to 584, marking the lowest level since November 2024. This decline underscores the ongoing cautious approach by energy firms, many of whom continue to prioritize debt reduction and shareholder returns over increasing production amid volatile market conditions.
U.S. Rig Count Highlights (January 10, 2025)
- Total U.S. Rig Count:
➤ 584 rigs – Down 5 rigs from last week and 35 rigs from a year ago. - Oil Rigs:
➤ 480 rigs – Down 2 rigs this week and 19 rigs from a year ago.
➤ Lowest oil rig count since November 2024. - Gas Rigs:
➤ 100 rigs – Down 3 rigs this week and 17 rigs from a year ago.
➤ Lowest gas rig count since November 2024. - Miscellaneous Rigs:
➤ 4 rigs – Unchanged from last week, up 1 rig year-over-year. - Offshore Rigs:
➤ 14 rigs – Unchanged from last week, down 6 rigs year-over-year.
State-by-State U.S. Rig Counts
| State | Current Rig Count | Weekly Change | Yearly Change |
|---|---|---|---|
| Texas | 282 | -3 | – |
| Oklahoma | 43 | 0 | 0 |
| New Mexico | 103 | 0 | – |
| North Dakota | 36 | 0 | – |
| Louisiana | 30 | 0 | – |
| Colorado | 9 | -1 | – |
| Kansas | 18 | -6 | – |
| Ohio | 9 | 0 | – |
| Pennsylvania | 15 | 0 | – |
| Utah | 11 | -1 | – |
| West Virginia | 10 | 0 | – |
| Wyoming | 18 | 0 | – |
Key Trends & Insights
- First U.S. Rig Count Decline in Six Weeks:
The national rig count dropped for the first time since November 2024. - Oil and Gas Prices Impacting Drilling Activity:
Lower U.S. oil and gas prices over the past two years have pushed energy firms to prioritize debt reduction and shareholder returns over drilling new wells. - EIA Projections for 2025:
- Crude Output: Projected to increase from a record 13.2 million barrels per day (bpd) in 2024 to 13.5 million bpd in 2025.
- Gas Output: Expected to rise to 103.7 billion cubic feet per day (bcfd) in 2025, compared to 103.2 bcfd in 2024, but still below the 2023 record of 103.8 bcfd.
- Regional Changes:
- Texas saw a decline of 3 rigs this week.
- Kansas experienced the most significant drop, with a 6-rig decrease to 18 active rigs.
- Other major producing states like Oklahoma, New Mexico, and North Dakota remained unchanged.
