MONAHANS, TEXAS – MARCH 27: An oil jack is shown near the Callon Petroleum area on March 27 … [+]
Last year marked a record for U.S. oil production with an average daily production of 12.93 million barrels per day (BPD). This record was 5% higher than the previous record of 12.31 million b/d set in 2019.
However, current data from the Energy Information Administration (EIA) shows that average daily production so far in 2024 is 13.12 million b/d, or 7.1% above the production level d ‘a year ago and 1.4% more than last year’s record pace.
U.S. natural gas production tells a similar story. The EIA recently confirmed that 2023 marked a record U.S. natural gas production of 125 billion cubic feet per day (Bcf). This is 4% ahead of the previous record set in 2022.
Natural gas data is not released as often as oil data, but the natural gas production level in January was 124.6 billion CFD. This follows a monthly production record in December 2023. This level was slightly below last year’s record level, but there are some seasonal effects in natural gas production. Comparing January 2024 to January 2023, this year’s production level was 1.1% higher than a year ago.
The price of West Texas Intermediate (WTI) crude is currently hovering around $85 per barrel, about 7% higher than a year ago. This should help keep US oil production levels high. The number of oil and gas drilling rigs in the United States is almost 20% lower than a year ago, although the rig count remained relatively stable compared to the previous quarter ( down 1%).
However, the decline in rig counts is more pronounced in rig counts for natural gas (down 35%) than for oil (down 14%).
In summary, U.S. oil and natural gas production continued their upward trajectory, with both above year-ago levels. Despite a slight decline in rig counts, high crude oil prices are expected to support continued production growth.
