U.S. Remains World’s Largest Oil Producer for Sixth Year in a Row

March 13, 2024 by admin

By Charles Kennedy – Mar 11, 2024, 1:30 PM CDT

The United States produced more petroleum than any other nation in 2023, for the 6th year in a row, with production averaging 12.9 million barrels daily, up from 12.3 million bpd in 2019, which set an international record at the time, according to the Energy Information Administration (EIA).

The U.S. likewise set a regular monthly worldwide production record in December, striking 13.3 million bpd that month.

The capacity for any other nation to beat this regular monthly record in the short-term is extremely low, according to the EIA, based upon capability. The only nation efficient in reaching the U.S. capability of 13 million bpd is state-owned Saudi Aramco, which just recently revealed it was stopping output capability growth strategies, which would have brought it as much as 13 million bpd by 2027.

In 2015, the U.S., Saudi Arabia and Russia was accountable for 40% (32.8 million bpd) of the world's petroleum output, followed by Canada, Iraq and China.

Russian production, according to the EIA, fell by 200,000 bpd in 2015, due to sanctions and Russia's OPEC+ voluntary cuts. Saudi production fell by about 900,000 bpd due to OPEC+ quotas and voluntary cuts.

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The boosts in output on the U.S. side are thanks to brand-new drilling innovations, with the Permian basin mostly accountable for the boosts.

U.S. production peaked in 1970 at 9.6 million bpd and after that entered into a state of decrease, dropping to 5 million bpd in 2008, with output once again increasing in 2009 thanks to hydraulic fracturing and boosted oil healing innovation. Development continued after that, till the COVID pandemic, according to the EIA.

By Charles Kennedy for Oilprice.com