US oil and gas rigs hold steady this week Baker Hughes notes

Oil and Gas Rig Activity Holds Steady in the U.S.

Key indicators from Baker Hughes signal a balanced output outlook

Baker Hughes reported that the total number of active oil and natural gas rigs remained unchanged at 539 for the week ending August 15. The company noted a minimal shift: oil rigs increased by one to 412, while gas rigs declined by one to 122.

Regional Highlights

• Texas – The state’s rig count dipped by one to 242, marking the lowest activity since September 2021.
• Wyoming – Rigs fell by one to 13, the lowest level recorded in August 2024.
• Permian Basin – Activity reduced by one to 255, the weakest count since September 2021.

Over the past few years, lower U.S. oil and gas prices have prompted energy firms to prioritize shareholder returns and debt reduction over production expansion. This shift has contributed to a roughly 5% decline in rig activity in 2024 and a 20% drop in 2023.

Capital Expenditure Outlook

TD Cowen tracked independent exploration and production companies and forecast a 4% reduction in capital spending for 2025 relative to 2024. This contrasts with flat year‑over‑year spending in 2024, a 27% increase in 2023, a 40% jump in 2022, and a 4% rise in 2021.

Future Production Projections

The U.S. Energy Information Administration (EIA) expects crude oil output to rise from a record 13.2 million barrels per day in 2024 to about 13.4 million bpd in 2025, despite analysts predicting a third consecutive year of declining spot crude prices.

On the gas front, the EIA projected a 65% increase in spot gas prices in 2025, prompting producers to boost drilling activity after a 14% price drop in 2024 caused several energy firms to cut output for the first time since the COVID‑19 pandemic reduced demand in 2020.

The EIA forecast gas output to climb to 106.4 billion cubic feet per day in 2025, up from 103.2 bcfd in 2024 and a record 103.6 bcfd in 2023.

Scott Disavino – Leading Analyst in North American Energy Markets

Role Overview

Scott is a seasoned energy markets expert, currently covering the North American power and natural gas sectors for Thomson Reuters.

Key Responsibilities

• Providing in-depth market analysis and forecasting for power and natural gas prices.
• Delivering strategic insights to support investment decisions across the North American energy landscape.
• Collaborating with senior analysts to publish market commentary and research briefs.

Contact & Social

Email: Scott.Disavino@reuters.com

LinkedIn: scott-disavino