U.S. crude oil production experienced a notable decline in January, slipping to 12.5 million barrels per day (bpd), marking a 6% drop from the record highs seen in December, as per data released by the Energy Information Administration on Friday.
The data revealed that crude oil output in Texas, the leading oil-producing state, retreated to 5.4 million bpd in January, a decline of approximately 5% compared to the preceding month. Similarly, production in North Dakota saw a significant downturn of nearly 13%, falling to 1.1 million bpd.
The downturn was attributed to a severe winter storm that swept through the region in January, disrupting oil production and causing shutdowns in Texas refining capacity as it blanketed a wide area with snow and rain.
Historical peaks were reached in December, with U.S. crude oil production hitting 13.3 million bpd. Texas, North Dakota, and New Mexico, key oil-producing states, all registered record levels of crude oil production during that period, according to EIA data.
However, the frigid weather in January led to a drastic reduction in North Dakota’s oil production, plummeting to between 600,000 bpd and 650,000 bpd, as reported by the state’s pipeline authority. Other major U.S. oil-producing regions also experienced adverse effects.
The inclement weather also impacted motor fuel consumption in January, with gasoline product supplied—a proxy for demand—falling by approximately 600,000 bpd to 8.2 million bpd, the lowest recorded in two years, according to the EIA’s monthly petroleum status report.
Furthermore, gross natural gas production in the U.S. Lower 48 states decreased by about 3.6% to a record 114.1 billion cubic feet per day (bcfd) in January, slightly down from the previous peak of 118.4 bcfd in December, as reported by the EIA.
In January, monthly output in Texas experienced a 4.6% decline to 33.5 bcfd, down from the record high of 35.1 bcfd in December, while monthly output in Pennsylvania decreased by 1.5% to 21.3 bcfd.