(MENAFN- Trend News Agency) BAKU, Azerbaijan, November 18. The number of active oil and natural gas rigs drilling in the U.S. Lower 48 has fallen steadily from a recent peak of 750 in December 2022 to 517 in October 2025, the U.S. Energy Information Administration (EIA) said, Trend reports.

The decline reflects producers' response to weaker prices and gains in drilling efficiency, the EIA noted.

Oil-directed rigs have dropped 33% over the period to 397, while gas-directed rigs are down 23% to 120. Gas rigs briefly fell to 96 last September amid historically low prices. Rig declines stabilized in October, the EIA said.

Despite the drop in activity, U.S. production has continued to climb as operators concentrate on the most productive basins and deploy longer laterals and more efficient completion techniques. Crude output in the Lower 48 hit a record 11.4 million barrels per day in July, and gas production reached 117.2 billion cubic feet per day in August.

The Permian Basin remains the top driver of U.S. crude growth, with production up 18%, or 1 million bpd, since late 2022 even as its rig count fell 29%. In Appalachia, the nation's largest gas-producing region, output has risen 10% despite a similar drop in rigs.

In its latest outlook, the EIA expects Lower 48 oil output to edge down by 1% in 2026, while natural gas production is set to rise slightly. It forecasts WTI crude will average $51 per barrel in 2026, down 21% from 2025, likely limiting oil drilling. Henry Hub gas prices are projected to increase 16%, supporting more gas-directed activity.

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