U.S. total rig count: ↓ 2 to 576 — the lowest since January
Oil rigs: ↓ 1 to 473 (lowest since Jan)
Gas rigs: ↓ 1 to 100
Misc rigs: unchanged at 3
Offshore rigs: stable at 11
On May 30, 2025, the U.S. Department of Energy (DOE) announced the cancellation of 24 clean energy projects, totaling over $3.7 billion in federal funding. These projects, primarily focused on carbon capture, hydrogen production, and industrial decarbonization, were deemed economically unviable and unlikely to provide a positive return on taxpayer investment.
EOG Resources (NYSE: EOG) is making a bold move into the Utica Shale with its $5.6 billion acquisition of Encino Acquisition Partners (EAP), a joint venture between Encino Energy and Canada Pension Plan Investment Board. This transformational deal marks EOG’s strategic expansion into Appalachia, adding 675,000 net acres to its portfolio and positioning the company as one of the leading producers in the region.
Bedrock Production LLC has officially assumed operational control of the Winston E1 Site in Parker County, Texas, following a permit transfer from EnerVest Operating LLC. The Texas Commission on Environmental Quality (TCEQ) finalized this change of ownership on May 22, 2025, under Permit #137696, marking a significant step in Bedrock’s strategic expansion within the Barnett Shale region.
Chevron Corporation (NYSE: CVX) has announced it will lay off nearly 800 employees in Midland County, Texas, according to a notice filed with the Texas Workforce Commission. The layoffs, scheduled to take effect on July 15, 2025, are part of a broader plan to reduce the company’s global workforce by up to 20% by the end of 2026.
In a strategic move aligned with shifting commodity price dynamics, SM Energy is proactively reducing its rig count in the Permian Basin through 2025. The company started the year with 9 active rigs, scaled back to 7 rigs by the end of Q1, and plans to operate just 6 rigs for the remainder of the year. This reduction isn’t reactionary—it’s part of a deliberate capital allocation strategy designed to protect margins and preserve flexibility in a potentially volatile oil market.
he Hugh Brinson Pipeline, a major natural gas infrastructure project led by Energy Transfer LP, continues to move forward as key regulatory approvals are secured. The Texas Commission on Environmental Quality (TCEQ) has issued Permit by Rule (PBR) registrations for two compressor stations that will support natural gas flow across the pipeline’s 442-mile route through Texas.
As drilling activity accelerates in Western Canada, a comparison of well permits issued from January through May highlights a clear year-over-year rebound.
The Haynesville Shale’s strategic location near Gulf Coast LNG facilities and its high-quality gas make it a prime candidate for continued development. However, operators remain vigilant, balancing expansion plans with market realities. As global demand for natural gas grows, the Haynesville is poised to play a significant role in meeting energy needs.
The factory model isn’t just a tactic—it’s a transformation. The Texas drilling chart reflects more than numbers. It shows that U.S. shale’s greatest strength is its ability to sustain output predictably and efficiently. This matters not only for domestic energy stability, but also for global trade, emissions reduction, and long-cycle investment.
