Oil and gas drilling activity continues to slide in Louisiana and nationwide

By Nolan McKendry | The Center Square  4/18/2025

(The Center Square) − Oil and gas drilling activity in Louisiana is continuing to slump, mirroring broader national trends, according to a report from the Louisiana Department of Natural Resources and energy services company Baker Hughes Inc.

The Department of Natural Resources reported a continued decline in offshore drilling activity in state waters, while Baker Hughes data showed that both oil and natural gas rig counts dropped significantly across the U.S. compared to last year.

In February 2025, the average number of drilling rigs operating in the United States stood at 590 — down 32 rigs from the same month in 2024, a 5.1% year-over-year decrease. The number of rigs targeting crude oil fell by 14, while those targeting natural gas dropped by 19.

Louisiana’s drilling activity saw even steeper losses.

The report shows just 32 rigs operating in the state — 17 fewer than in February 2024, marking a 34.7% decline. The drop included 12 fewer rigs targeting gas and five fewer targeting oil.

Federal offshore activity in the Gulf of Mexico also declined. The average rig count for February 2025 was 10, down from 19 the year before, with all nine lost rigs targeting oil. Most of that activity occurs in the Central Gulf of Mexico, just beyond Louisiana’s coastal boundary.

The downturn is reflected in state-issued drilling permits as well. Louisiana issued just 27 permits in January 2025, down from 35 the same month a year earlier.

Monthly comparisons show the decline is accelerating. In January 2024, Baker Hughes reported 28 rigs operating in Louisiana; by January 2025, that number had fallen to 18. Offshore rigs in Louisiana’s federal Outer Continental Shelf dropped from 15 to 10 in the same period.

Overall, Louisiana’s total rig count fell from 48 to 31.