December 22, 2021
Source: U.S. Energy Information Administration, Petroleum Supply Monthly
From December 20 through December 30, Today in Energy will feature some of our favorite articles from 2021. Today’s article was originally published on March 9.
U.S. crude oil production averaged 11.3 million barrels per day (b/d) in 2020, down 935,000 b/d (8%) from the record annual average high of 12.2 million b/d in 2019. The 2020 decrease in production was the largest annual decline in the U.S. Energy Information Administration’s records. The production decline resulted from reduced drilling activity related to low oil prices in 2020.
In January 2020, U.S. crude oil production reached a peak of 12.8 million b/d. In March 2020, crude oil prices decreased because of the sudden drop in petroleum demand that resulted from the global response to the coronavirus (COVID-19) pandemic. The declining prices led crude oil operators to shut in wells and limit the number of wells brought online, lowering the output for the major oil-producing regions. In May, U.S. crude oil production reached its lowest average monthly volume for the year at 10.0 million b/d.
Source: U.S. Energy Information Administration, Petroleum Supply Monthly
In 2020, more crude oil was produced in Texas than in any other state or region of the United States, accounting for 43% of the national total. Crude oil production in Texas averaged 4.87 million b/d in 2020, a decrease of 205,000 b/d (4%) from the record high of 5.07 million b/d set in 2019.
The Federal Offshore Gulf of Mexico saw the largest decrease in crude oil production, falling by 245,000 b/d (13%) to an annual average of 1.65 million b/d in 2020. Several hurricanes and tropical storms struck the Gulf of Mexico last year, causing operators to evacuate platforms and shut in production. North Dakota had the second-largest decrease at 242,000 b/d (17%) to an annual average of 1.18 million b/d. Oklahoma had the largest percentage decrease at 19%, falling to an annual average of 469,000 b/d.
The largest statewide increase in crude oil production in 2020 was in New Mexico, where it increased by 133,000 b/d (15%) to a record annual average high of 1.04 million b/d. The growth in New Mexico came from the Permian Basin, which spans parts of western Texas and eastern New Mexico.
Source: U.S. Energy Information Administration, Petroleum Supply Monthly and State Energy Data System
Principal contributor: Emily Geary
I'm an energy industry expert with a deep understanding of the dynamics influencing crude oil production in the United States. My expertise is rooted in comprehensive knowledge of the U.S. Energy Information Administration's data, industry trends, and the broader geopolitical and economic factors shaping the oil market. My experience in analyzing and interpreting energy-related information allows me to provide insights into the intricacies of U.S. crude oil production.
Now, delving into the content of the article dated December 22, 2021:
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U.S. Crude Oil Production in 2020:
- U.S. crude oil production in 2020 averaged 11.3 million barrels per day (b/d), marking a significant decline of 935,000 b/d (8%) from the record annual average high of 12.2 million b/d in 2019.
- The 2020 decrease in production was the largest annual decline in the U.S. Energy Information Administration’s records.
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Factors Contributing to Production Decline:
- The production decline was primarily attributed to reduced drilling activity, a consequence of the low oil prices experienced in 2020.
- In January 2020, U.S. crude oil production reached its peak at 12.8 million b/d. However, the sudden drop in petroleum demand, triggered by the global response to the COVID-19 pandemic, led to a decline in crude oil prices.
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Regional Variations:
- Texas emerged as the leading crude oil producer in 2020, accounting for 43% of the national total. However, the state witnessed a 4% decrease in production, averaging 4.87 million b/d in 2020.
- The Federal Offshore Gulf of Mexico experienced the largest decline in crude oil production, falling by 245,000 b/d (13%) to an annual average of 1.65 million b/d, influenced by hurricanes and tropical storms causing evacuations and production shutdowns.
- North Dakota had the second-largest decrease at 242,000 b/d (17%), while Oklahoma experienced the largest percentage decrease at 19%, falling to an annual average of 469,000 b/d.
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Statewide Changes:
- New Mexico saw the largest statewide increase in crude oil production in 2020, with a growth of 133,000 b/d (15%) to a record annual average high of 1.04 million b/d.
- This increase in New Mexico was attributed to growth in the Permian Basin, spanning parts of western Texas and eastern New Mexico.
This information is sourced from the U.S. Energy Information Administration's Petroleum Supply Monthly and State Energy Data System, with Emily Geary identified as the principal contributor to the provided data and analysis.
