The United States has continued to break records in oil and natural gas production, with 2023 marking a new high for both commodities. According to data from the Energy Information Administration (EIA), U.S. oil production reached an average daily production of 12.93 million barrels per day last year, surpassing the previous record set in 2019 by 5%.
The trend has continued in 2024, with current data showing an average daily production of 13.12 million barrels per day. This represents a 7.1% increase from the production level of a year ago and a 1.4% improvement over last year’s record pace.
Similarly, U.S. natural gas production hit a record high of 125 billion cubic feet per day in 2023, up 4% from the previous record set in 2022. While January’s natural gas production level of 124.6 billion cubic feet per day was slightly behind last year’s record, it was still 1.1% higher than a year ago.
Despite a 20% decline in the number of rigs drilling for oil and gas compared to a year ago, elevated crude oil prices around $85 per barrel are expected to support continued production growth. This decline in rig count is more pronounced in the natural gas sector, with a 35% decrease in the number of rigs drilling for natural gas compared to a 14% decrease for oil.
Overall, both U.S. oil and natural gas production have defied expectations and continued to rise, driven by record-breaking production levels and supported by favorable market conditions.
