US Oil Gas Rig Count Falls 12th Time 13 Weeks

The U.S. oil and gas rig count dropped by two to 542 rigs, marking the 12th decline in 13 weeks, according to Baker Hughes. Oil rigs fell by seven to 415, the lowest since September 2021, while natural gas rigs increased by five to 122, the highest since August 2023. This ongoing decline reflects a shift in energy firms' focus toward shareholder returns and debt reduction amid weak and volatile oil prices over the past two years. Despite the rig count reduction, the U.S. Energy Information Administration projects crude oil output to rise from a record 13.2 million barrels per day in 2024 to about 13.4 million barrels per day in 2025. Additionally, a forecasted 68% increase in natural gas prices in 2025 is expected to boost drilling activity and gas output following declines in 2024. The Permian Basin rig count specifically decreased by three rigs to 260, while crude prices dropped by over $2 per barrel last week.