U.S. oil and natural gas production hit record highs in 2024, despite a decrease in drilling rigs.
U.S. oil and natural gas production has seen a significant increase compared to the previous year's levels, according to the latest data from the Energy Information Administration (EIA).
In a recent report, the EIA revealed that the average daily oil production in the United States for 2024 stands at 13.12 million barrels per day (BPD), which is not only 7.1% higher than the same period last year but also 1.4% above the record pace set in 2023. The previous year marked a significant milestone with an average daily production of 12.93 million BPD—5% greater than the record of 12.31 million BPD established in 2019.
The natural gas sector is experiencing a similar upward trend. The EIA confirmed that 2023 was a record-breaking year for U.S. natural gas production, achieving an average of 125 billion cubic feet per day (CFD). This was a 4% increase from the record set in 2022. While natural gas production data is less frequently reported compared to petroleum, January 2024 figures showed a production level of 124.6 billion CFD, which is slightly less than the monthly record set in December 2023 but still 1.1% higher than in January 2023.
The current price of West Texas Intermediate (WTI) crude oil is hovering around $85 per barrel, about 7% higher than the same period last year. This price elevation is anticipated to continue supporting robust U.S. oil production levels. Despite this, the number of rigs drilling for oil and gas in the U.S. has decreased by nearly 20% compared to last year. The rig count has remained relatively stable since the previous quarter, with only a 1% drop; however, the decrease is more significant in the natural gas sector, with a 35% reduction in rigs compared to a 14% decrease for oil.
The United States' oil and natural gas industries have sustained their growth, outpacing last year's production levels. Although there has been a decline in the number of active rigs, especially in the natural gas domain, the elevated crude oil prices are expected to bolster continued production growth.
