SunSirs: The Number of Active Oil and Gas Drilling Rigs in the United States Fell for the First Time in Four Weeks

On Wednesday, November 26, Baker Hughes, a U.S. energy services company, reported in its closely watched report that the number of active oil and gas drilling rigs operated by U.S. energy companies declined this week for the first time in four weeks.

Data showed that the total number of oil and gas drilling rigs, a leading indicator of future production, fell by 10 to 544 in the week ending November 26, the lowest level since September.

Baker Hughes stated that the number of U.S. oil drilling rigs fell by 12 to 407 this week, the lowest since September 2021; while the number of natural gas drilling rigs increased by 3 to 130, the highest since July 2023.

The number of other hybrid rigs decreased by 1.

Baker Hughes usually releases its North American rig count on Fridays, but due to the Thanksgiving holiday on Thursday, the company released this report a few days earlier.

In Texas, the largest oil and gas producing state, the number of drilling rigs fell by eight to 226, the lowest level since July 2021.

The number of oil and gas drilling rigs declined by about 5% in 2024 and by 20% in 2023. The low prices of U.S. crude oil and natural gas over the past two years have prompted energy companies to focus more on improving shareholder returns and paying off debt rather than increasing production.

Although analysts predict that U.S. spot crude oil prices will fall for the third consecutive year in 2025, the U.S. Energy Information Administration (EIA) expects crude oil production to increase from a record 13.2 million barrels per day in 2024 to about 13.6 million barrels per day in 2025.

Regarding natural gas, the EIA predicts that spot gas prices will rise by 58% in 2025, which will prompt producers to increase drilling activity this year. Previously, a 14% drop in gas prices in 2024 led several energy companies to cut production for the first time since the decline in fuel demand caused by the COVID-19 pandemic in 2020.

The EIA forecasts that natural gas production will increase from 103.2 billion cubic feet per day in 2024 to 107.7 billion cubic feet per day in 2025, following a record high of 103.6 billion cubic feet per day in 2023.

If you have any enquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.