Rate of Oil and Gas Drilling Activities Drops in the United States

By Shubhendra Anand , 05 December, 2024

The United States went through a decline in oil and gas drilling activities in 2024. Since the beginning of the year, the United States has faced many challenges in keeping up with the oil drilling process. Recently, the surveys showed that the total number of active oil and gas drillings declined in the United States by June 2024. 

According to the surveys conducted in 2024, the number of oil and gas rigs in the United States decreased to 588. However, it was not the same as the previous year in 2023, when the total number of drilling rigs was 682. This indicates a slowdown in the weekly oil production in the United States in 2024. The weekly oil production in the United States reached 13.2 million barrels per day in June 2024. It used to be at an all-time high with 13.3 million barrels per day of oil production in the United States. Many reasons lead to fewer oil and gas rigs in the United States in 2024. This may be due to the rising affinity for clean energy transition in the energy sector. With clean energy transformation worldwide, there will be less investment in oil drilling. Simultaneously, consumers are drawn towards alternatives to fossil fuels like wind and solar energies. Experts claim that the fall in drilling activities in the oil and gas sector indicates progress in the clean energy transition.

Researchers reveal that the United States may suffer from a decline in oil and gas drilling in the global energy market in 2024. A decline in drilling activities in the oil and gas sector may lead to reduced supplies. If the supply fails to meet the demands of consumers in the market, the prices of fuels will go up. Hence, it will impact the economic equilibrium of the United States market.

                         Decline in the United States rig activities for oil and gas sector: