Advances in drilling and completion technologies mean fewer rigs are needed. (Source: Shutterstock)
The U.S. Energy Information Administration reported the number of deployed natural gas rigs in the Lower 48 fell by 32% over 2023 to 2024, primarily in the gas-focused Appalachian and Haynesville shales.
The percentage accounted for about 50 rigs going offline after 2022. The numbers confirm the anecdotal evidence from many gas producers who reported cutting their exploration activities.
Oversupplied gas markets caused natural gas prices to hit record lows in 2024, and advances in drilling and completion technologies meant fewer rigs were needed for the same activity, the EIA reported.
In Appalachia, the rig numbers declined by 34% (43 rigs) in 2023 and 24% (21 rigs) in 2024. In the Haynesville, a basin particularly sensitive to prices, the number of rigs decreased by 55% over the two-year period, where gas production also fell by 7% in the same period, the EIA reported.
U.S. gas prices have rallied over the last five months, staying at or above $3.50/MMBtu at the Henry Hub for most of 2025.
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