The oil and gas industry in the United States is booming, with record-high levels of production being reported in both sectors. According to the Energy Information Administration (EIA), U.S. oil production averaged 12.93 million barrels per day (BPD) in 2024, surpassing the previous record set in 2019.
In addition, natural gas production in the U.S. also reached record levels, with 125 billion cubic feet per day (CFD) produced in 2023. While not reported as frequently as petroleum data, natural gas production in January 2024 was 1.1% higher than the previous year.
The price of West Texas Intermediate (WTI) crude is currently around $85 per barrel, a 7% increase from the previous year. This rise in prices is expected to support continued production growth, despite a slight decline in the number of rigs drilling for oil and gas.
Notably, the Permian Basin in west Texas is leading the way in oil and gas production, with towns like Midland and Odessa boasting low unemployment rates of 2.6% and 3.5% respectively. Governor Gregg Abbott recently shared a report highlighting the success of the Permian Basin in driving employment and economic growth in the region.
Overall, the future looks bright for the U.S. oil and gas industry, as production levels continue to climb and prices remain favorable for continued growth. Despite some fluctuations in rig count, the outlook for the industry remains positive.
