July 21, 2025
After a 12-week decline, U.S. oil and gas drilling activity saw a notable rebound this past week, driven primarily by a surge in natural gas rigs. According to the latest Baker Hughes Rig Count, the total number of active rigs rose by seven—the largest weekly gain since December—reflecting growing optimism in the gas sector as prices climb. While oil rig counts continued to slip, steady activity in key basins like the Haynesville and a sharp uptick in states like Kansas signal a potential turning point for upstream operations heading into the second half of 2025.
Here’s a structured summary and analysis of the latest U.S. rig activity based on the Baker Hughes data and broader market context:
🔍 Weekly Rig Activity Overview
- Total U.S. Rig Count:
📈 Increased by 7 rigs to 544 — first weekly gain in 12 weeks, and the largest since December. - Breakdown:
- Oil rigs: ⬇️ Down 2 to 422 — lowest since Sept 2021
- Gas rigs: ⬆️ Up 9 to 117 — highest since March 2024
- Miscellaneous: ➡️ Unchanged at 5 rigs
- Year-over-Year Change:
- Total rigs down 42 (–7%) vs. 586 in July 2024
- Oil rigs down 55, gas rigs up 14, misc rigs down 1
📍 Regional Highlights
- Oklahoma:
➡️ Steady at 42 rigs (up from 33 a year ago) - Texas:
⬇️ Down 2 to 253 rigs — lowest since Oct 2021 - New Mexico:
⬆️ Added 4 rigs, now at 94 - Permian Basin (TX & NM):
⬇️ Down 2 to 263 rigs — lowest since Oct 2021 - Haynesville Shale (AR, LA, TX):
⬆️ Up 3 to 41 rigs — highest since March 2024 - Kansas:
⬆️ Jumped by 9 to 22 rigs (Red Top Rig Report) - Other States:
- Louisiana: +2 (total 33)
- Colorado: +1 (total 9)
- Utah: +1 (total 10)
- Alaska, California, North Dakota, West Virginia, Wyoming, Ohio, Pennsylvania: No change
💡 Industry Trends & Outlook
- Capital Discipline Continues:
- E&P firms plan ~3% capex reduction in 2025, after flat spending in 2024 and major increases in prior years (2023: +27%)
- Production Outlook:
- Crude Output: EIA projects a rise from 13.2M bpd (2024) → 13.4M bpd (2025)
- Gas Output: EIA sees an increase to 105.9 Bcf/d in 2025 from 103.2 Bcf/d (2024)
- Driven by a forecast 68% spike in gas prices in 2025
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