US rig activity muted despite production hikes – EIA

The average monthly number of active rigs drilling for oil in the US has “declined steadily” over the past few years despite improvements in drilling efficiencies, according to the EIA.

IMAGE: Oil pump jacks. Getty Images

The US Energy Information Administration (EIA) said that active oil and natural gas rigs in the US have declined from a peak of 750 rigs in December 2022 to 517 rigs in October this year.

Specifically, the oil-directed rig count has dropped 33% since December 2022, to 397 rigs in October 2025, the EIA said.

The general correlation between rig activity and production has frayed in recent months, with production hitting record levels even as rig counts decline, the EIA said.

The energy agency now forecasts US crude oil production to decline by a slight 100,000 b/d in 2026. Meanwhile, lower crude oil prices are further expected to limit oil-directed drilling activity next year, according to the EIA.

“The declining rig count reflects operators’ responses to declining crude oil and natural gas prices,” the EIA added.

By Aparupa Mazumder

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