March 24, 2025
The U.S. oil and natural gas rig count experienced its first increase in three weeks, according to the latest Baker Hughes report released on March 21, 2025. The report shows a modest rise of one active rig, bringing the total count to 593. However, this figure remains 31 rigs, or approximately 5%, below the count from the same period last year. The slight recovery in drilling activity comes amid a challenging environment of fluctuating oil and gas prices, ongoing market uncertainties, and shifting priorities among energy companies.
Despite the gradual decline in rig counts over the past two years, the U.S. Energy Information Administration (EIA) projects continued growth in both crude oil and natural gas output throughout 2025. U.S. crude production is expected to increase to approximately 13.6 million barrels per day (bpd), up from a record 13.2 million bpd in 2024. Natural gas output is forecasted to reach 105.2 billion cubic feet per day (bcfd) in 2025, driven by a predicted 91% increase in spot gas prices.
Regional drilling activity remains mixed, with the Permian Basin and Eagle Ford experiencing slight declines, while other areas such as Oklahoma and Louisiana are showing growth. Meanwhile, oil prices have seen modest gains, with the West Texas Intermediate (WTI) and Brent benchmarks trading above last week’s levels.
This report aims to provide a detailed analysis of the latest rig count data, production trends, regional activity, and market dynamics, offering insights into the evolving landscape of the U.S. oil and gas industry.
Overall Rig Count:
- The total number of active drilling rigs in the U.S. rose by 1 to 593, which is 31 rigs (5%) below the count from the same period last year (624 rigs).
Oil Rigs:
- Fell by 1 to 486 this week.
- Down by 23 rigs compared to the same time last year.
- A decline of 5% in 2024 and 20% in 2023 due to lower oil prices and a shift in focus toward shareholder returns and debt reduction.
Gas Rigs:
- Increased by 2 to 102 this week.
- Down by 10 rigs compared to the same time last year.
- The EIA projects a 91% increase in spot gas prices in 2025, prompting producers to boost drilling activity.
Miscellaneous Rigs:
- Remained unchanged at 5.
Regional Breakdown:
- Permian Basin: Declined by 1 rig to 300, down by 15 rigs compared to last year.
- Eagle Ford: Remained steady at 48 rigs, down by 7 rigs compared to last year.
- Oklahoma: Gained 2 rigs, reaching 53 active rigs, up from 44 last year.
- Texas: Fell by 1 to 280 rigs.
- New Mexico: Remained unchanged at 102 rigs.
- North Dakota: Held steady at 32 rigs.
- Louisiana: Increased by 1 to 30 rigs.
- Colorado: Remained steady at 8 rigs.
- Kansas (Red Top Rig Report): Dropped by 1 to 17 rigs.
- Ohio: Continued with 9 rigs.
- Pennsylvania: Remained at 15 rigs.
- Utah: Held steady at 12 rigs.
- West Virginia: Stayed at 11 rigs.
- Wyoming: Remained unchanged at 21 rigs.
- Alaska: Reported 10 active rigs.
Production Insights:
- Weekly U.S. crude oil production decreased for the first time in seven weeks to 13.573 million bpd, nearing the all-time high of 13.631 million bpd recorded in December 2024.
- The EIA forecasts U.S. crude output to rise to approximately 13.6 million bpd in 2025.
- Gas output is expected to reach 105.2 bcfd in 2025, up from 103.2 bcfd in 2024.
Oil Prices:
- WTI: Trading up by $0.21 per barrel at $68.28, which is a $1.25 per barrel increase from last week.
- Brent: Trading up by $0.09 per barrel at $72.09, which is a $1.75 per barrel increase from last week.
