As we approach the end of November 2025, the energy sector continues to show dynamic shifts in drilling activity, storage levels, and production metrics. This week’s update draws on the latest data from Baker Hughes and the U.S. Energy Information Administration (EIA), highlighting trends in rig counts across the globe and within the U.S., as well as key indicators for oil and natural gas storage and production. These figures provide insights into supply dynamics, which could influence market prices and strategies for both investors and consumers.
Global Rig Counts
Global rig counts, which include both oil and gas drilling operations, are tracked monthly for international regions outside North America. The most recent available data from September 2025 shows a worldwide total of 1,812 rigs.
While weekly updates are not available for global figures, North American activity (primarily the U.S. and Canada) contributes significantly, with a combined count of around 732 rigs as of late November.
International rig counts have shown modest fluctuations, but detailed monthly breakdowns by region (such as Europe, the Middle East, Asia-Pacific, Africa, and Latin America) were not fully detailed in recent reports. Overall, global drilling has declined by about 5% year-to-date in 2025, reflecting cautious investment amid volatile prices.
U.S. Rig Counts by State and Basin
In the United States, the total rig count fell sharply this week, dropping by 10 to 544 rigs as of November 28, 2025—a decrease of 38 rigs compared to the same time last year.
This marks the largest weekly decline since 2023 and signals reduced drilling momentum.
Breaking it down by type:
Oil rigs: 407 (down 12 from the prior week, the lowest since September 2021)
Gas rigs: 130 (up 3, the highest in recent months)
Miscellaneous rigs: 7 (down 1)
Detailed breakdowns by basin and state are typically provided in Baker Hughes’ reports, but recent news highlights trends in key areas.
The Permian Basin, the largest U.S. oil-producing region spanning Texas and New Mexico, likely accounts for a significant portion of the oil rig decline, given its dominance in national drilling.
Other major basins like the Eagle Ford, Bakken, and Haynesville may see mixed activity, with gas-focused basins potentially benefiting from the uptick in gas rigs.
By state, Texas and New Mexico often lead in rig counts due to Permian activity, while states like North Dakota (Bakken) and Pennsylvania (Marcellus) contribute to oil and gas, respectively. Specific state-level changes were not fully reported this week, but overall U.S. trends suggest consolidation in high-productivity areas amid lower oil prices.
Weekly Storage Numbers
Natural gas storage levels have begun the winter heating season with withdrawals, indicating tightening supply as demand rises. For the week ending November 21, 2025, the EIA reported a net withdrawal of 11 billion cubic feet (Bcf), larger than the expected 9 Bcf draw.
This follows a 14 Bcf withdrawal the prior week (ending November 14), bringing total working gas in storage to approximately 3,932 Bcf (estimated based on sequential draws). Compared to last year, storage is about 0.6% lower, but it remains 4% above the five-year average (2020–2024).
These early withdrawals suggest a well-supplied market but potential for price support if cold weather persists.
For crude oil, inventories saw a build of 2.8 million barrels for the week ending November 21, 2025, reaching 426.9 million barrels—reversing the prior week’s 3.4 million barrel draw.
This level is about 4% below the five-year average. Gasoline inventories increased by 2.5 million barrels to 209.9 million (3% below average), while distillate stocks rose by 1.1 million barrels to 112.2 million (5% below average).
The builds indicate ample supply heading into winter, potentially easing pressure on fuel prices.
Production Numbers
U.S. crude oil production remains robust despite the rig count drop, estimated at 13.8 million barrels per day (bpd) for the week ending November 21, 2025—down slightly by 20,000 bpd from the previous week but up from 13.2 million bpd a year ago.
The EIA forecasts average production of 13.6 million bpd for 2025 overall, with global output expected to reach 106.1 million bpd.
Natural gas production data is tracked monthly rather than weekly, but the EIA projects U.S. output to rise to 107.7 billion cubic feet per day (bcfd) in 2025, up from 103.2 bcfd in 2024.
Recent trends show accelerating production, particularly associated gas from oil fields, contributing to high storage levels entering winter.
Implications for Investors and Consumers
For investors, the sharp drop in U.S. rig counts—particularly oil rigs—signals caution among exploration and production companies, likely due to oil prices hovering around $58.80 per barrel.
This could lead to reduced capital spending and potential consolidation in the sector, but sustained high production (near record levels) supports cash flows for major producers. Gas rigs ticking up may benefit LNG exporters as global demand grows, with prices at $4.56 per million British thermal units (MMBtu).
However, building oil inventories and forecasts of global oversupply (with stocks rising to 2.93 billion barrels by Q4 2025) could pressure prices downward, favoring downstream refiners over upstream firms.
Consumers may see mixed impacts: Lower rig activity could constrain future supply, potentially driving higher prices in 2026, but current builds in oil and gasoline stocks suggest stable or lower fuel costs through winter. Natural gas withdrawals are modest so far, keeping heating bills in check despite early cold snaps. Overall, the market appears balanced, with ample U.S. production buffering against geopolitical risks, but investors should monitor EIA forecasts for oversupply risks that could weigh on energy equities.
Got Questions on investing in oil and gas?
If you would like to advertise on Energy News Beat, we offer ad programs starting at $500 per month, and we use a program that gets around ad blockers. When you go to Energynewsbeat.co on your phone, or even on Brave, our ads are still seen. The traffic ranges from 50K to 210K daily visitors, and 5 to 7K or more pull the RSS feeds daily.
https://energynewsbeat.co/request-media-kit/
Be the first to comment