Oil & Gas

On March 11, 2024, the Energy Information Administration (EIA) confirmed that the United States has become the largest crude oil producer in history. The EIA's analysis indicates that not only did the U.S. surpass the previous record in 2023, but it is unlikely that any other country will surpass it soon. The U.S. produced an average of 12.9 million barrels per day (b/d) of crude oil in 2023, breaking the previous record of 12.3 million b/d set in 2019. The record is unlikely to be broken by any other country in the near future, as no other country has reached a production capacity of 13.0 million b/d.

The world’s three largest oil producers- the U.S.,Russia, and Saudi Arabia- accounted for 40% of the world’s oil production in 2023. The resurgence of U.S. crude oil production began in 2009 after nearly 40 years of annual production declines. This resurgence was attributed to the widespread adoption of hydraulic fracturing and horizontal drilling techniques by producers. Despite a temporary decline in 2020 and 2021 due to the COVID-19 pandemic's economic impact, U.S. production has continued to climb steadily. The growth in total crude oil and natural gas production in the United States has been primarily driven by the expansion of production in the Permian Basin, located in western Texas and eastern New Mexico.