U.S. energy companies have reduced the number of active oil and natural gas rigs to the lowest level seen since January 2021, according to the latest report from Baker Hughes.
For the week ending May 9, the total rig count dropped by six to 578, marking a 4% decline compared to the same time last year. Oil rigs fell by five to 474, the lowest since January, while gas rigs remained steady at 101.
Significant declines were observed in key regions. The Gulf of Mexico’s rig count fell by three to nine, the lowest since September 2021. The Denver-Julesburg shale region saw one rig removed, bringing its total to five, also the lowest since early 2021.
The Permian Basin, the largest oil-producing area in the U.S., lost two rigs, dropping to 285—the lowest count since December 2021. New Mexico’s rig count decreased by four to 96, the lowest since 2021.
This downward trend reflects a broader slowdown in drilling activity driven by lower oil and gas prices over recent years. Energy firms have shifted focus toward improving shareholder returns and reducing debt rather than expanding production.
Despite this, the U.S. Energy Information Administration forecasts a slight increase in crude output in 2025, projecting production to rise from a record 13.2 million barrels per day in 2024 to about 13.4 million barrels per day next year.
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