U.S. oil and natural gas drilling activity has continued to decline even as production reaches record highs, the U.S. Energy Information Administration (EIA) said on Monday.

The EIA said the average number of active rigs in the Lower 48 has fallen from 750 in December 2022 to 517 in October 2025, reflecting operators’ responses to lower oil and natural gas prices and improvements in drilling efficiencies.

The report said that since December 2022, oil-directed rigs have dropped 33% to 397, while gas-directed rigs are down 23% to 120 in October 2025.

Despite fewer rigs, production continues to rise, EIA said, adding that crude oil output in the Lower 48 reached a record 11.4 million barrels per day in July 2025, and natural gas output hit a record 117.2 billion cubic feet per day in August.

The EIA said operators are concentrating on the most productive plays, drilling longer laterals, and using more efficient completion techniques.

The Permian remains the largest U.S. oil-producing region and the main driver of production growth, the report added. Although its rig count has fallen 29% since December 2022, Permian oil production has increased 18%, or 1 million barrels per day, over the same period.
Source: Reuters (Reporting by Anushree Mukherjee in Bengaluru)