SEATTLE (Oil Monster): The latest analysis from the U.S. Energy Information Administration (EIA) highlights a continuous decline in the average number of active oil and natural gas drilling rigs across the U.S. Lower 48 states over recent years. According to the report, the active rig count has fallen significantly from a peak of around 750 rigs in December 2022 to just 517 rigs in October 2025, marking a notable downward trend in drilling activity.
The agency pointed out that oil-directed rigs have seen a sharp 33% reduction, dropping from 594 rigs in late 2022 to 397 rigs in October this year. Similarly, natural gas-directed rigs decreased by 23% over the same period, falling to 120 rigs. EIA noted that both oil and natural gas rig counts stabilized during October 2025, suggesting the decline may be slowing.
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Despite fewer rigs in operation, U.S. production has surged to record levels. Crude oil output in the Lower 48 reached an all-time monthly high of 11.4 million barrels per day (b/d) in July 2025, while natural gas production hit a record 117.2 billion cubic feet per day (Bcf/d) in August 2025 — demonstrating continued gains in drilling efficiency and productivity.
The Permian Basin remains the nation’s top crude oil-producing region, even as the number of rigs operating there has slid 29% since December 2022. Producers in the region have managed to boost oil output by 18% over that period. Similarly, Appalachia continues to lead U.S. natural gas production, with operators increasing output by 10% despite a 29% drop in active rigs, the EIA report added.
Industry analysts suggest that technological advancements, improved well completions, and production optimization strategies are enabling operators to generate more output with fewer rigs.
