US Rig Count Hits Lowest Since 2021 Amid Cuts

U.S. oil and gas rig counts have declined for seven straight weeks, dropping by four to 555, the lowest since November 2021 and representing a 6% decrease from a year prior. Oil rigs decreased by three to 439, the lowest since October 2021, while natural gas rigs fell by one to 113 but are up 15% year-over-year. Texas, New Mexico, and Oklahoma, including the Permian Basin, all experienced declines in active rigs. The downturn in drilling is driven by economic uncertainty, price volatility, and an industry focus on shareholder returns and cautious capital spending. Despite fewer rigs, the U.S. Energy Information Administration projects crude oil output will reach a record 13.4 million barrels per day in 2025, with higher gas prices expected to boost gas drilling. Analysts continue to cite lower energy prices as the main reason for the ongoing rig count reduction.