EIA: US rig count drops despite production soaring to record highs

The number of active oil and gas rigs in the US has fallen considerably over the past three years, according to a new analysis released by the US Energy Information Administration (EIA).

The number of rigs being used for oil and natural gas drilling has dropped by more than 200 in the past three years. The amount of active rigs hit a peak in December 2022 of 750, however, in October the count had fallen to 517.

Nevertheless, despite less rigs in operation, US crude oil production skyrocketed to an all-time hight of 11.4mn barrels per day in July 2025. Similarly, natural gas also reached a record high of 117.2bn cubic feet (3.3bn cubic metres) per day in August.

Significant improvements in drilling efficiencies has been a key factor in the drop in rig count as operators shift their focus to the most productive plays. This has also resulted in operators drilling longer lateral lengths.

However, falling crude oil and natural gas prices has also played a major role in the decline in active oil and gas rigs across the lower 48 states.

The Permian region, the US’s biggest crude oil producing region, has witnessed a drop in rig numbers of almost 30% since December 2022. However, the Permian has also seen an increase in oil production of 18% or 1mn barrels per day during this time, highlighting the trend of greater drilling efficiencies in practice.

In the US’s biggest natural gas producing region of Appalachia, it has been a similar story. The number of active rigs has fallen by 29%, despite natural gas production climbing by 10% or roughly 3.3bn cubic feet (93mn cubic metres) per day. The production jump follows a period during 2024 of stagnation as natural gas prices fizzled.