Energy News Beat
The U.S. energy sector is navigating a paradoxical landscape: rig counts are declining, yet crude oil and liquefied natural gas (LNG) production continue to climb. This trend, driven by improved drilling efficiencies and strategic focus on high-yield basins, underscores the resilience of U.S. energy output despite reduced drilling activity. Below, we dive into the latest rig count data by basin, U.S. oil and gas production figures, LNG export numbers, and how to access this data in .csv format for further analysis.
Rig Counts: A Snapshot of Declining Activity
According to the Baker Hughes North American Rotary Rig Count, the total U.S. rig count fell by four to 555 for the week ending June 13, 2025, marking the lowest oil rig count since October 2021. Oil rigs dropped by three to 439, while gas rigs decreased by one to 113. This decline reflects a broader trend, with the total rig count down 4% from last year, driven by lower oil and gas prices prompting operators to prioritize shareholder returns and debt reduction over aggressive drilling.
Here’s a breakdown of rig count changes in key U.S. shale basins, as reported on X:
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Permian Basin (West Texas and Eastern New Mexico): Down 1 rig to 269. The Permian, the nation’s largest oil-producing basin, continues to see reduced activity, with the current count being the lowest since November 2021.
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Eagle Ford (South Texas): Up 1 rig to 34. This basin saw a slight increase, though it remains 8 rigs below last year’s count.
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Williston (North Dakota, Bakken): Unchanged at 30 rigs. The Bakken holds steady, maintaining consistent activity.
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Cana Woodford (Oklahoma): Up 1 rig to 21. A modest increase signals cautious optimism in this gas-heavy basin.
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DJ Niobrara (Colorado/Wyoming): Up 3 rigs to 8. This smaller basin saw the largest relative increase, reflecting targeted activity.
These shifts highlight a selective approach by operators, with some basins like the Permian seeing sustained cuts, while others, like the Eagle Ford and DJ Niobrara, experience incremental gains. The overall decline aligns with reports from Reuters, noting a 5% rig count drop in 2024 and a 20% reduction in 2023, driven by market dynamics and efficiency gains.
U.S. Oil and Gas Production: Defying the Rig Count Drop
Despite fewer rigs, U.S. crude oil and natural gas production are on the rise, fueled by technological advancements and higher productivity per rig. The U.S. Energy Information Administration (EIA) projects crude oil output to increase from a record 13.2 million barrels per day (bpd) in 2024 to 13.4 million bpd in 2025, though this forecast was slightly downgraded due to lower oil price expectations.
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Crude Oil Production: In the Permian, production is expected to dip slightly to 6.51 million bpd in April 2025 from 6.57 million bpd in March, yet the basin remains a powerhouse, contributing significantly to the national total. Nationally, 2024 saw record production, and 2025 is poised for further gains despite fewer rigs.
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Natural Gas Production: Dry natural gas production averaged 106.2 billion cubic feet per day (Bcf/d) for the week ending June 11, 2025, up 0.3% from the prior week. The EIA’s Drilling Productivity Report notes that new-well production per rig continues to rise, offsetting rig count declines.
These gains stem from improved drilling techniques, such as horizontal drilling, and a focus on high-yield wells, particularly in shale plays like the Permian and Eagle Ford. The EIA highlights that nearly all new U.S. wells are horizontal or directional, maximizing output per rig.
LNG Exports: A Growing Global Footprint
U.S. LNG exports are also surging, reinforcing the country’s role as a leading global supplier. For the week of June 5 to June 11, 2025, 28 LNG vessels with a combined capacity of 105 billion cubic feet departed U.S. ports, according to Bloomberg Finance data. Key export terminals included:
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Sabine Pass: 6 vessels
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Corpus Christi: 5 vessels
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Freeport: 5 vessels
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Plaquemines: 4 vessels
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Cameron: 3 vessels
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Calcasieu Pass: 3 vessels
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Cove Point: 1 vessel
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Elba Island: 1 vessel
LNG pipeline receipts averaged 14.4 Bcf/d, unchanged from the prior week, reflecting steady export demand. The EIA notes that net injections into natural gas storage reached 109 Bcf for the week ending June 6, the seventh consecutive week above 100 Bcf, signaling robust supply to support both domestic and export markets.
What’s Driving the Trend?
The divergence between falling rig counts and rising production reflects a shift in industry priorities. Lower oil prices—WTI traded at $61.80 per barrel on June 20, 2025, down 7.69%—and anticipated OPEC+ production increases are pressuring operators to optimize existing assets rather than expand drilling. Companies like Diamondback, Coterra Energy, and Matador Resources are cutting rigs in 2025, focusing on efficiency and financial discipline.
Meanwhile, LNG export growth is driven by global demand, particularly in Europe and Asia, with U.S. terminals operating at near-full capacity. The EIA’s storage data suggests ample supply to meet this demand, supported by production efficiencies in gas-heavy basins like Haynesville and Marcellus.
Looking Ahead
The U.S. energy sector is proving its adaptability, leveraging technology to boost output despite a leaner rig fleet. However, challenges loom: lower oil price forecasts, potential global demand weakness due to U.S. tariffs, and OPEC+ supply increases could temper growth. It is fun watching the overall view of peak oil constantly being pushed out or removed from the discussions.
For now, the Permian remains the backbone of U.S. oil production, while LNG exports solidify America’s role in global energy markets.
Stay tuned to Energy News Beat for weekly updates on rig counts, production trends, and export data.
Sources: Baker Hughes, EIA, Reuters, YCharts, Enverus, OilPrice.com, posts on X
The post US Rig Counts Down Amid Rising U.S. Crude and LNG Production appeared first on Energy News Beat.
