U.S. Crude Oil Production Increased by Two Percent During 2024: EIA

U.S. crude oil production averaged 13.2 million barrels per day (b/d) during 2024, up by 270,000 b/d compared to the previous year, according to an April 16 report published by the U.S. Energy Information Administration. The increase in crude oil production can be attributed to increased productivity, amid technological advancements and increased efficiency. Majority of the production increase was from the Permian region.

Oil companies are increasingly leveraging technological enhancements, including electronic hydraulic fracturing technologies, artificial intelligence and automated drilling procedures, to improve operations while operating fewer rigs. This alteration towards digital solutions has enhanced completion and drilling techniques and shortened rig downtime, and it offers innovative analytics to help target forthcoming operations. These technological innovations and results have permitted producers to elevate production rates for rigs as they drill new wells.

The Permian, Bakken and Eagle ford regions account for around two-thirds of total U.S. production. The Permian region accounted for 48 percent of total U.S. crude oil production during 2024. The region’s production made up for nearly all the growth during 2024, increasing by 370,000 b/d in comparison to the previous year to average 6.3 million b/d. The West Texas Intermediate (WTI) crude oil price needs to financially incentivise producers to drill in the Permian region. The WTI prices averaged $77 per barrel (b) during 2024, and the mean average breakeven price was $64/b in the Permian Delaware Basin and $62/b in the Permian Midland Basin, the two main basins in the region.

The Permian region averaged 308 active drilling rigs during 2024, down by 26 rigs compared to 2023. Despite the decrease in the number of active rigs during 2024, production in the Permian region rose.

Crude oil production in the Baken and Eagle Ford regions each accounted for nine percent of the total U.S. crude oil production during 2024, production in these regions remained mostly flat compared to 2023.