Oil production in the U.S. is poised to set new records, according to the U.S. Energy Information Administration (EIA). The agency predicts that national crude oil production will average 12.4 million barrels per day (b/d) in 2023 and 12.8 million b/d in 2024, surpassing the 12.3 million b/d record set in 2019.

U.S. crude oil production averaged an estimated 11.9 million b/d in 2022, largely due to increased output in the Permian region. Additional gains of 470,000 b/d in 2023 are projected to boost oil production in this region to an average of 5.7 million b/d. Completion of new natural gas pipelines will allow producers to transport more of the natural gas that is extracted along with crude oil to market, removing a potential constraint on crude oil production and eliminating gas flaring.

Source: EIA

Crude oil production in the Gulf of Mexico is forecast to increase by 120,000 b/d in 2023 as production in most other U.S. regions declines slightly.

Expanded production is projected to continue into 2024, when crude oil output in the Permian will increase by 350,000 b/d. Other U.S. regions will experience oil output gains of 70,000 b/d.