U.S. Weekly Baker Hughes Oil Rig Count Actual 410, Previous 415.

U.S. Weekly Baker Hughes Oil Rig Count Actual 410, Previous 415.

The U.S. oil rig count has fallen for the second consecutive week, according to the latest data from Baker Hughes. As of July 25, 2025, the total number of active drilling rigs for oil and gas in the United States stood at 540, down 46 from the same time last year [1]. This decrease is primarily driven by a decline in oil rigs, which fell by 5 to 410, while gas rigs rose by 2 to 124 [1].

The decrease in oil rigs is notable, as it marks the lowest number of active oil rigs since September 2021. The oil rig count has been under pressure due to lower U.S. oil prices, prompting energy firms to focus on shareholder returns and debt repayment rather than increasing output [3]. Despite this, the U.S. Energy Information Administration (EIA) projects that crude output will rise from 13.2 million barrels per day (bpd) in 2024 to around 13.4 million bpd in 2025, driven by efficiency gains in drilling techniques [3].

Conversely, gas rigs have shown resilience, rising to 124, their highest level since August 2023. This increase is attributed to strong export demand and higher spot prices for natural gas, which are projected to rise by 68% in 2025 [3]. The EIA projects that gas output will rise to 105.9 billion cubic feet per day (bcfd) in 2025, up from 103.2 bcfd in 2024 [3].

The decline in the oil rig count is a significant indicator of the energy sector's transition towards increased efficiency and lower capital intensity. This trend is expected to continue, with analysts projecting the U.S. oil rig count to stabilize around 440–460 rigs by 2027 [2]. Investors should monitor basin-level rig activity and consider the strategic implications of the rig count on energy stocks and midstream services.

References:
[1] https://oilprice.com/Energy/Energy-General/Oil-Rig-Count-Falls-Again-as-Frac-Crews-Vanish.html
[2] https://www.ainvest.com/news/decoding-baker-hughes-rig-count-strategic-compass-energy-sector-investors-2508/
[3] https://energynow.com/2025/08/us-drillers-cut-oil-and-gas-rigs-for-second-week-baker-hughes-says/