U.S. crude oil production fell by 305,000 barrels per day (bpd) in January, reaching 13.15 million bpd. This marks the lowest level in more than a year, according to data released by the U.S. Energy Information Administration (EIA) on Monday. The EIA also revised its December estimate downward by about 40,000 barrels, bringing the total to 13.45 million bpd.
Texas, the leading oil producer in the U.S., experienced a decrease of 105,000 bpd, bringing its output to 5.58 million bpd—the largest decline in 15 months. New Mexico, the second-largest producer, saw a drop of 53,000 bpd, with its output falling to 2.06 million bpd. This marks the state’s lowest production level in seven months.
In addition to crude oil, U.S. natural gas production also dropped by 1.7% in January.
Despite the recent decline, the EIA reported earlier this month that the U.S. set a record for crude oil production in 2023, averaging 12.9 million bpd. This surpassed the previous U.S. and global record of 12.3 million bpd set in 2019. No other country has surpassed the 13 million bpd mark, and Saudi Arabia recently backed away from its plans to increase production to 13 million bpd by 2027.
In 2023, the U.S., Russia, and Saudi Arabia together accounted for 40% of global oil production, totaling 32.8 million bpd, according to the EIA.
As noted by Oilprice.com’s Michael Kern, headlines and statements from the Trump administration have been significant market movers this month. The recent drop in production contrasts with ongoing U.S. sanctions on Venezuela and the freezing of 20 million barrels of Iranian oil, as well as the potential long-term effects of rising tariff wars.
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