U.S. energy firms have reduced the number of active oil and natural gas rigs for the third consecutive week, reaching the lowest count since December 2021, according to Baker Hughes $BKR. The total rig count fell by four to 576 in the week ending January 24, 2025, marking a 7% decrease compared to the same period last year. Oil rigs decreased by six to 472, while gas rigs increased by one to 99. In the Permian Basin, the rig count dropped by six to 298, the lowest since February 2022. This decline is attributed to lower oil and gas prices over the past two years, leading companies to focus on debt repayment and shareholder returns rather than boosting production. Despite this, the U.S. Energy Information Administration projects crude production to rise from a record 13.2 million barrels per day in 2024 to approximately 13.6 million barrels per day in 2025.