EIA: US oil and gas rig counts slow despite record production

The U.S. Energy Information Administration reported on Monday that drilling activity in the U.S. has declined even though production is at record levels.

The EIA reported that the number of active drilling rigs has decreased from 750 in December 2020 to 517 by October 2025. This is due to operators' response to lower natural gas and oil prices, and improved drilling efficiency.

According to the report, since December 2022 oil-directed drilling rigs fell 33%, to 397. Gas-directed drilling rigs dropped 23%, to 120, in October 2025.

EIA reported that despite fewer rigs production continues to increase. Crude oil output in Lower 48 states reached a new record of 11.4 million barrels a day in July 2025 and natural gas output reached a new record of 117.2 billion cubic foot per day in August.

EIA stated that operators are concentrating their efforts on the most profitable plays, drilling long laterals and using more efficient finishing techniques.

According to the report, Permian oil production remains the largest in the United States and is the primary driver of growth. Permian oil output has increased by 18% or 1,000,000 barrels per day over the same time period, despite its rig count falling 29% from December 2022. (Reporting by Anushree Mukherjee in Bengaluru)

(source: Reuters)