On December 15, a forecast was made suggesting that the United States had set a new annual oil production record, based on preliminary data from the Energy Information Administration (EIA). Although awaiting official confirmation which was expected to come later in the year, projections hinted at this milestone.
On March 11, 2024, the EIA confirmed the speculation: the United States had indeed surpassed all previous records, becoming the world’s largest crude oil producer in history.
According to the EIA’s analysis, not only did the U.S. break its own record in 2023, but it also set a global benchmark that seems unlikely to be surpassed in the near future by any other nation.
“The United States produced more crude oil than any nation at any time,” stated the EIA’s International Energy Statistics report, affirming this trend for the past six consecutive years. In 2023, U.S. crude oil production, including condensate, averaged 12.9 million barrels per day (b/d), surpassing the previous U.S. and global record of 12.3 million b/d set in 2019. December 2023 alone witnessed a monthly record high, exceeding 13.3 million b/d.
The EIA’s analysis suggests that this record-breaking trend in U.S. crude oil production, starting in 2009, stemmed from the widespread adoption of hydraulic fracturing and horizontal drilling techniques. Despite a brief setback during 2020 and 2021 due to the COVID-19 pandemic’s economic repercussions, production has steadily ascended.
The resurgence in production, notably in the Permian Basin of western Texas and eastern New Mexico, has been a significant contributing factor to recent increases in total crude oil and natural gas production.
Distinguishing the U.S. from other major producers such as Russia and Saudi Arabia is the fact that the latter two countries continue to produce significantly more oil than they consume, positioning them as major net exporters. Conversely, the U.S. remains a net importer of crude oil, although it is progressively moving towards becoming a net exporter.
In 2023, crude oil imports stood at 2.4 million barrels per day (BPD), marking a notable decline from the levels seen in 2005 and 2006, and the lowest since 1972. The U.S. transitioned into a net exporter of finished products like diesel and gasoline in 2011, extending to net exports of finished products plus crude oil in 2020. By 2023, these net exports grew to 1.6 million BPD, indicating a potential trajectory for the U.S. to become a net exporter of crude oil alone by the end of the decade.