A recent report by energy technology company Baker Hughes reveals that U.S. energy firms have slashed the number of active oil and natural gas rigs to their lowest levels since the beginning of the year. According to the report, the number of oil rigs fell to 474, while natural gas rigs remained unchanged.
This week’s drop lowers the total rig count by 4% compared to the same period last year. Significant reductions occurred in key regions.
The largest oil-producing shale play in the country, the Permian Basin, saw the number of active rigs fall to 285. In the Gulf of Mexico, drillers shut down 3 rigs, leaving just 9 in operation. Meanwhile, the Denver-Julesberg basin which spans Colorado, Kansas, Nebraska, and Wyoming, saw its count decline to 5 rigs. New Mexico’s total rig count dropped to 96, the lowest since April 2022.
Overall, the number of active rigs in the U.S. is at its lowest point since 2021. This trend is consistent with the broader decline observed in recent years, with rig counts falling by 20% and 5% in 2023 and 2024, respectively.
Major companies like Matador Resources, Diamondback Energy and Coterra Energy have each announced further reductions in rig activity.
Since rig counts are considered a leading indicator of future production, these reductions suggest that producers are responding to falling oil and gas prices by focusing less on increasing production and more on debt repayment and growing shareholder returns. However, in a somewhat contrasting development, the U.S. Energy Information Administration still projects that crude oil production will rise to roughly 13.4 million barrels per day this year.
This is slightly below the agency’s previous outlook, reflecting concerns that U.S. tariffs, weaker prices, and global economic uncertainty could dampen future demand. The agency also anticipates gas production to reach 104.9 billion cubic feet per day this year.
Meanwhile, the top oil-producing state in America; Texas, is experiencing a sharp decline in drilling activity. The state reported its lowest number of new drilling permit applications in 4 years, with only 570 applications being submitted last month. This is quite a drop from the 795 applications submitted in March and its lowest figure from February 2021.
This decline in permit activity reflects growing uncertainty among producers, who are increasingly cautious about launching new drilling projects. Primary concerns driving this hesitancy are worries that a potential trade war could slow global economic growth and reduce demand and fears that a global supply glut could saturate the market and depress prices.
Any easing of the current macroeconomic uncertainties could put the industry back on firm footing and give enterprises like GEMXX Corp. (OTC: GEMZ) a path to offering greater shareholder value.
NOTE TO INVESTORS: The latest news and updates relating to GEMXX Corp. (OTC: GEMZ) are available in the company’s newsroom at https://ibn.fm/GEMZ
About MiningNewsWire
MiningNewsWire (“MNW”) is a specialized communications platform with a focus on developments and opportunities in the Global Mining and Resources sectors. It is one of 70+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, MNW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, MNW brings its clients unparalleled recognition and brand awareness.
MNW is where breaking news, insightful content and actionable information converge.
To receive SMS alerts from MiningNewsWire, text “BigHole” to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.MiningNewsWire.com
Please see full terms of use and disclaimers on the MiningNewsWire website applicable to all content provided by MNW, wherever published or re-published: https://www.MiningNewsWire.com/Disclaimer
MiningNewsWire
Los Angeles, CA
www.MiningNewsWire.com
310.299.1717 Office
Editor@MiningNewsWire.com
MiningNewsWire is powered by IBN
