Overview

• U.S. onshore oil production has slightly declined from its December 2024 peak of 13.63 million barrels per day to 13.46 million barrels per day in mid-April 2025, according to the U.S. Energy Information Administration.
• Oil prices have dropped to multi-year lows near $55–$60 per barrel, pushing many shale producers below breakeven thresholds and prompting cutbacks in drilling activity.
• The U.S. drilling rig count has fallen by 5.5% over the last 12 months, with operators scaling back projects and deferring well plans due to rising costs and uncertain demand.
• ConocoPhillips and Baker Hughes have confirmed layoffs and spending reductions, joining other major companies restructuring in response to weaker market conditions.
• Offshore oil projects remain resilient, with large backlogs and stronger economics, contrasting sharply with the slowdown in onshore activity.