According to a recent report from the Energy Information Administration (EIA), the United States maintained its position as the world’s leading oil producer for the sixth consecutive year in 2023.
The report indicates that crude oil production in the U.S., including condensate, averaged 12.9 million barrels per day (b/d) throughout 2023. This figure surpassed both the previous American and global record of 12.3 million b/d set in 2019. Additionally, the average monthly U.S. crude oil production reached a new high in December 2023, exceeding 13.3 million b/d.
In its report, the EIA emphasized that the United States has consistently outpaced all other nations in crude oil production for the past six years, as confirmed by the International Energy Statistics.
Last year, the U.S., Russia, and Saudi Arabia collectively contributed approximately 40% of global oil production, totaling 32.8 million b/d. This trio has dominated global oil production since 1971, encompassing production in the Russian Federation and the Soviet Union prior to its dissolution in 1991.
Canada, Iraq, and China emerged as the next three largest oil-producing countries in 2023, collectively generating 13.1 million b/d, slightly surpassing the U.S. alone.
The surge in U.S. crude oil production reflects a remarkable turnaround in recent years, following a decades-long decline from the previous peak of 9.6 million b/d in 1970 to a low of 5.0 million b/d in 2008. The resurgence began in 2009, coinciding with the adoption of hydraulic fracturing and horizontal drilling techniques by producers. Despite intermittent setbacks in 2020 and 2021 due to plummeting oil prices amid reduced demand caused by the COVID-19 pandemic, U.S. production has maintained an upward trajectory.
Production in the Permian Basin, covering parts of western Texas and eastern New Mexico, has been a significant driver of the overall increase in crude oil and natural gas production in the U.S.
While Russia led the world in crude oil production in 2017, its growth has since slowed. The country has faced sanctions on oil and gas sales from the U.S. and other Western nations following its renewed invasion of Ukraine in February 2022. As part of the OPEC+ agreement, Russia, along with other participating countries, announced production cuts in November 2022 and February 2023, in addition to voluntary cuts of 500,000 b/d.
