The US Energy Information Administration or EIA stated in a latest update that the average number of active rigs per month that are drilling for oil and natural gas in the US Lower 48 states has declined steadily over the past few years from a recent peak of 750 rigs in December 2022 to 517 rigs this October. The declining rig count reflects operators’ responses to declining crude oil and natural gas prices and improvements in drilling efficiencies.

Since December 2022, the oil-directed rig count has dropped 33% to 397 rigs in October 2025, and the natural gas-directed rig count has declined 23% to 120 rigs over the same period. Natural gas-directed rigs dropped to 96 rigs in September last year amid historically low and prolonged natural gas prices. Both natural gas- and oil-directed rig count declines stabilized in October 2025.

The traditional link between rig activity and output has weakened recently, with production at record highs despite reduced rig counts. In July 2025, crude oil production in the Lower 48 set a monthly record of 11.4 million barrels per day (b/d), and in August 2025 natural gas production set a record of 117.2 billion cubic feet per day (Bcf/d). Operators have been focusing on the most productive plays, drilling longer lateral lengths to access more hydrocarbons, and using more efficient completion techniques to ensure economic viability.

The Permian region is the largest US crude oil producing region and the largest contributor to US crude oil production growth despite the total number of rigs dropping 29% since December 2022. Over this period, operators have increased oil production in the Permian by 18%, or 1.0 million b/d.

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