United States Continues as Top Global Oil Producer for Sixth Consecutive Year

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

In 2023, the United States maintained its dominance in crude oil production for the sixth consecutive year, surpassing all other nations. According to the Energy Information Administration (EIA), the country’s average daily production reached 12.9 million barrels, up from the 2019 record of 12.3 million barrels per day, which was a global milestone at the time.

Notably, the United States achieved another milestone in December by setting a monthly global production record, hitting 13.3 million barrels per day. The EIA indicates that the likelihood of any other nation surpassing this monthly record in the near future is minimal, considering their respective capacities.

Among the contenders, only Saudi Aramco, the state-owned oil company of Saudi Arabia, possesses the capability to match the U.S. capacity of 13 million barrels per day. However, Saudi Aramco recently announced a halt to its output capacity expansion plans, which aimed to reach 13 million barrels per day by 2027.

United States Continues as Top Global Oil Producer for Sixth Consecutive Year
United States Continues as Top Global Oil Producer for Sixth Consecutive Year (Credits: Market Screener)

In 2023, the combined crude oil output of the United States, Saudi Arabia, and Russia accounted for 40% (32.8 million barrels per day) of the world’s total production. Following these three leaders were Canada, Iraq, and China.

Russian oil production experienced a decline of 200,000 barrels per day last year, attributed to sanctions and voluntary production cuts as part of Russia’s participation in the OPEC+ agreement. Similarly, Saudi Arabia’s production saw a reduction of around 900,000 barrels per day due to OPEC+ quotas and voluntary cuts.

Contrastingly, the United States witnessed an increase in output, primarily propelled by advancements in drilling technologies, notably in the Permian Basin.

The trajectory of U.S. production tells a story of fluctuation: peaking at 9.6 million barrels per day in 1970, declining to 5 million barrels per day in 2008, and then rebounding in 2009 with the advent of hydraulic fracturing and enhanced oil recovery technologies. This growth trajectory persisted until the onset of the COVID-19 pandemic, as reported by the EIA.

I'm Richard Rosales, I cover political news and ongoing US elections.