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Average Oil Rig Count vs. Production,
A REVIEW OF THE TEXAS ECONOMY
Oil production on the rise as oil rigs decrease
August 2025 | By Peggy Fikac, Dan Olsen
Oil production on the rise
as oil rigs decrease
Average Oil Rig Count vs. Production,
2014–2024
Oil Rig Count vs. Production Data
| Year | Average Oil Rig Count | Production (billions of barrels) |
|---|---|---|
| 2014 | 757 | 0.89 |
| 2015 | 586 | 1.08 |
| 2016 | 243 | 1.03 |
| 2017 | 324 | 1.07 |
| 2018 | 445 | 1.29 |
| 2019 | 467 | 1.56 |
| 2020 | 306 | 1.61 |
| 2021 | 156 | 1.43 |
| 2022 | 269 | 1.54 |
| 2023 | 326 | 1.65 |
| 2024 | 268 | 1.73 |
Average Gas Rig Count vs. Production, 2014–2024
Gas Rig Count vs. Production Data
| Year | Average Gas Rig Count | Production (MCFs in billions) |
|---|---|---|
| 2014 | 99 | 8.03 |
| 2015 | 68 | 8.42 |
| 2016 | 31 | 8.14 |
| 2017 | 27 | 7.43 |
| 2018 | 36 | 7.97 |
| 2019 | 41 | 9.38 |
| 2020 | 24 | 9.91 |
| 2021 | 17 | 10.28 |
| 2022 | 28 | 11.04 |
| 2023 | 39 | 11.72 |
| 2024 | 31 | 12.49 |
*1,000 cubic feet, a measurement of gas production
Fossil fuels production remains an important part of the Texas economy, as improvements in technology have changed how oil and gas is extracted. Production is no longer tightly tied to rig count because horizontal drilling and improved fracking techniques allow companies to produce more oil with fewer rigs.
From fiscal 2014 through 2024, the number of active oil rigs decreased by 65 percent, yet oil production increased by nearly 94 percent. Gas rig counts decreased by nearly 69 percent, while gas production increased by close to 56 percent in Texas. At the same time, Texas oil and gas tax collections rose by 46 percent.
Oil and Natural Gas Production Tax Collections, 2014-2024
Tax Collection Data
| Fiscal Year | Crude Oil Tax Collections (Billion Dollars) | Natural Gas Tax Collections (Billion Dollars) |
Total (Billion Dollars) |
|---|---|---|---|
| 2014 | $3.87 | $1.90 | $5.77 |
| 2015 | $2.88 | $1.28 | $4.16 |
| 2016 | $1.70 | $0.58 | $2.28 |
| 2017 | $2.11 | $0.98 | $3.09 |
| 2018 | $3.39 | $1.43 | $4.82 |
| 2019 | $3.89 | $1.69 | $5.57 |
| 2020 | $3.23 | $0.93 | $4.15 |
| 2021 | $3.45 | $1.57 | $5.02 |
| 2022 | $6.36 | $4.47 | $10.83 |
| 2023 | $5.93 | $3.35 | $9.28 |
| 2024 | $6.30 | $2.13 | $8.44 |
Total Rigs for Horizontal Wells vs. Vertical Wells 2014-2024
Rig Count Data
| Month | Total Vertical | Total Horizontal |
|---|---|---|
| Jan-14 | 258 | 521 |
| Feb-14 | 255 | 541 |
| Mar-14 | 266 | 548 |
| Apr-14 | 271 | 563 |
| May-14 | 281 | 571 |
| Jun-14 | 275 | 571 |
| Jul-14 | 262 | 582 |
| Aug-14 | 258 | 601 |
| Sep-14 | 264 | 604 |
| Oct-14 | 255 | 606 |
| Nov-14 | 251 | 623 |
| Dec-14 | 216 | 620 |
| Jan-15 | 167 | 567 |
| Feb-15 | 135 | 446 |
| Mar-15 | 107 | 370 |
| Apr-15 | 87 | 322 |
| May-15 | 74 | 289 |
| Jun-15 | 68 | 286 |
| Jul-15 | 77 | 284 |
| Aug-15 | 78 | 299 |
| Sep-15 | 75 | 280 |
| Oct-15 | 66 | 267 |
| Nov-15 | 62 | 265 |
| Dec-15 | 55 | 257 |
| Jan-16 | 48 | 238 |
| Feb-16 | 35 | 205 |
| Mar-16 | 36 | 177 |
| Apr-16 | 29 | 157 |
| May-16 | 30 | 146 |
| Jun-16 | 28 | 152 |
| Jul-16 | 37 | 165 |
| Aug-16 | 41 | 185 |
| Sep-16 | 43 | 196 |
| Oct-16 | 35 | 209 |
| Nov-16 | 40 | 224 |
| Dec-16 | 50 | 252 |
| Jan-17 | 49 | 273 |
| Feb-17 | 44 | 306 |
| Mar-17 | 44 | 339 |
| Apr-17 | 53 | 359 |
| May-17 | 52 | 388 |
| Jun-17 | 55 | 394 |
| Jul-17 | 52 | 398 |
| Aug-17 | 52 | 395 |
| Sep-17 | 47 | 394 |
| Oct-17 | 46 | 385 |
| Nov-17 | 46 | 390 |
| Dec-17 | 43 | 405 |
| Jan-18 | 37 | 411 |
| Feb-18 | 38 | 432 |
| Mar-18 | 37 | 447 |
| Apr-18 | 35 | 459 |
| May-18 | 36 | 477 |
| Jun-18 | 37 | 485 |
| Jul-18 | 35 | 480 |
| Aug-18 | 39 | 474 |
| Sep-18 | 39 | 479 |
| Oct-18 | 41 | 481 |
| Nov-18 | 39 | 482 |
| Dec-18 | 34 | 484 |
| Jan-19 | 35 | 480 |
| Feb-19 | 37 | 465 |
| Mar-19 | 31 | 460 |
| Apr-19 | 29 | 456 |
| May-19 | 28 | 440 |
| Jun-19 | 28 | 428 |
| Jul-19 | 28 | 420 |
| Aug-19 | 27 | 415 |
| Sep-19 | 28 | 392 |
| Oct-19 | 31 | 382 |
| Nov-19 | 28 | 374 |
| Dec-19 | 26 | 372 |
| Jan-20 | 20 | 373 |
| Feb-20 | 16 | 377 |
| Mar-20 | 19 | 372 |
| Apr-20 | 12 | 268 |
| May-20 | 2 | 153 |
| Jun-20 | 2 | 110 |
| Jul-20 | 4 | 100 |
| Aug-20 | 4 | 99 |
| Sep-20 | 4 | 102 |
| Oct-20 | 4 | 116 |
| Nov-20 | 5 | 136 |
| Dec-20 | 3 | 151 |
| Jan-21 | 5 | 166 |
| Feb-21 | 9 | 184 |
| Mar-21 | 10 | 192 |
| Apr-21 | 7 | 201 |
| May-21 | 7 | 208 |
| Jun-21 | 10 | 209 |
| Jul-21 | 9 | 213 |
| Aug-21 | 10 | 218 |
| Sep-21 | 14 | 221 |
| Oct-21 | 14 | 229 |
| Nov-21 | 13 | 246 |
| Dec-21 | 15 | 253 |
| Jan-22 | 15 | 260 |
| Feb-22 | 14 | 284 |
| Mar-22 | 14 | 302 |
| Apr-22 | 16 | 324 |
| May-22 | 15 | 333 |
| Jun-22 | 15 | 339 |
| Jul-22 | 14 | 344 |
| Aug-22 | 16 | 349 |
| Sep-22 | 14 | 341 |
| Oct-22 | 14 | 346 |
| Nov-22 | 15 | 351 |
| Dec-22 | 14 | 349 |
| Jan-23 | 13 | 359 |
| Feb-23 | 11 | 355 |
| Mar-23 | 9 | 352 |
| Apr-23 | 12 | 354 |
| May-23 | 11 | 341 |
| Jun-23 | 12 | 326 |
| Jul-23 | 11 | 309 |
| Aug-23 | 11 | 293 |
| Sep-23 | 11 | 291 |
| Oct-23 | 7 | 290 |
| Nov-23 | 8 | 287 |
| Dec-23 | 11 | 289 |
| Jan-24 | 10 | 287 |
| Feb-24 | 10 | 281 |
| Mar-24 | 9 | 275 |
| Apr-24 | 10 | 277 |
| May-24 | 13 | 272 |
| Jun-24 | 13 | 265 |
| Jul-24 | 13 | 258 |
| Aug-24 | 12 | 255 |
| Sep-24 | 9 | 261 |
| Oct-24 | 9 | 265 |
| Nov-24 | 11 | 262 |
| Dec-24 | 10 | 268 |
Fiscal year average horizontal rig counts decreased by 49 percent during this period, as drilling processes have become more efficient. Having fewer rigs affects employment and purchases of taxable equipment and other goods related to well development.
Texas employment in natural resources and mining fell 30 percent from 2014 to 2024.
Sales taxes from the mining sector grew more than 17 percent from 2014 to 2024, but they make up a smaller share of overall sales tax collections, falling from 6.3 percent to 4.2 percent.
Natural Resources and Mining Employment, 2014-2024
Employment Data
| Year | Natural Resources and Mining Employment (in thousands) |
|---|---|
| 2014 | 304.4 |
| 2015 | 290.7 |
| 2016 | 224.1 |
| 2017 | 215.9 |
| 2018 | 240.0 |
| 2019 | 252.8 |
| 2020 | 208.7 |
| 2021 | 176.7 |
| 2022 | 194.9 |
| 2023 | 212.5 |
| 2024 | 210.0 |
For the
week ending on
May 30, 2025,
50.6%
Of All U.S. Horizontal
Drilling rigs
are in Texas.
Texas is home to half the country’s horizontal rigs, which have made oil and gas production more efficient.
Sources: Baker Hughes Rig Count; Comptroller of Public Accounts