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.
Recommended Reading
If US Cancels, US Pays: Interior’s Burgum Calls for Sovereign Risk Insurance
2025-04-25 - With a sovereign risk insurance in place, a president cancelling a permit “would have to say ‘We're canceling this thing by fiat, but you get your money back that you've invested,” Interior Secretary Doug Burgum told energy industry members in Oklahoma City.
World Order at Risk, Warn US Security Experts
2025-04-25 - A panel of former State Department, National Security Council, National Intelligence Council and other officeholders expressed concern about the future of the U.S.’ relationships at CERAWeek by S&P Global.
Oxy’s Hollub: EOR Essential to Energy Security as Oil Supply Peaks
2025-04-25 - EOR will be essential in U.S. energy security as reservoirs currently supplying U.S. oil will peak in the coming few years, said Vicki Hollub, Oxy president and CEO.
AI Presents Complicated Puzzle for Already Stretched Energy Industry
2025-04-24 - The multifaceted U.S. energy market has a lot of competing priorities and AI is just one of them, ONEOK CEO Pierce Norton said at an event hosted by the Oklahoma State University Hamm Institute for American Energy.
NextEra Energy Expects to See Minimum Tariff Exposure
2025-04-23 - NextEra Energy CEO John Ketchum put the renewable energy unit’s exposure to tariffs at less than $150 million through 2028 on more than $75 billion in expected capex.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.