U.S. Oil Output Hits Record High in August

The United States set a new crude oil production record in August 2024, averaging 13.4 million barrels per day (bpd), according to the Energy Information Administration (EIA). This figure eclipsed the previous peak of 13.3 million bpd in December 2023 and solidified the U.S.’s position as the world’s top oil producer—a title it has held since 2018.

Through the first eight months of 2024, monthly production only dipped below 13 million bpd once, reflecting a consistent upward trend. According to the EIA, the United States’ average production of crude oil will reach 13.2 million bpd for all of 2024, surpassing the previous record of 12.9 million bpd set in 2023.

By 2025, U.S. crude production is projected to rise further to 13.5 million bpd on the back of the ongoing shale boom.

Shale producers have gotten good at squeezing oil out of previously uneconomic reserves thanks to fracking advancements and horizontal drilling. The Permian Basin continues to lead the charge, with its vast reserves and unmatched output.

With WTI crude priced at $69.58 per barrel and Brent at $73.66, margins are healthy for producers, solidifying the nation’s position as a global energy powerhouse.

Behind the scenes, technology has made wells more productive than ever. Better drilling precision, smarter analytics, and leaner operations mean producers can pump more oil at a lower cost—keeping U.S. production humming, even in a volatile market.

Big Oil – ExxonMobil, Chevron, Shell, BP, and TotalEnergies – reported last week growing oil and gas production for the third quarter from a year earlier, as they look to grow advantaged lower-cost assets to deliver the energy the world needs. Meanwhile, European majors have scaled back their renewables ambitions and pivoted back to their core business of oil and gas.

Source: By Julianne Geiger for Oilprice.com