U.S. Becomes Largest Oil Producer in History

This year will be a record-setting year for the oil and gas industry in Texas and the United States. As a matter of fact, the U.S. will become the largest producing country in history this year, as proclaimed by a news story on CNN this week.

“As the world grapples with the existential crisis of climate change, environmental activists want President Joe Biden to phase out the oil industry, and Republicans argue he’s already doing that. Meanwhile, the surprising reality is the United States is pumping oil at a blistering pace and is on track to produce more than any country has in history,” CNN reporter Matt Egan stated.

Texas leads the nation in oil and natural gas production and will set records this year, too.

In October and November, Texas achieved record-high crude oil production of 5.7 million barrels per day (mb/d), alongside a new high in natural gas marketed production at 33.6 billion cubic feet per day (bcf/d) in October, Texas Oil and Gas Association (TXOGA) Chief Economist Dean Foreman, said.

November also saw record highs in natural gas liquids (NGL) production at 3.5 mb/d and in-state refinery NGL direct use at 3.2 mb/d.

In addition, for natural gas flows in September, Texas produced 27.6 bcf/d of dry natural gas, supplemented by 5.1 bcf/d of interstate net inflows, and exported 18.1 bcf/d. In the first three quarters of 2023, Texas exported oil, natural gas, and derived products worth $164 billion, according to the United States International Trade Commission.

“Texas’ role in the energy landscape has become increasingly critical, achieving this feat with modest drilling activity, thanks to productivity gains,” said Foreman. “As the state has set new records in oil and natural gas production, processing, and exports, these achievements not only underscore Texas’ competitive advantages in resources, business climate, and trade but also highlight its growing importance in the national and global energy discourse.”

All of these records come during a time when President Biden has vowed to get rid of the U.S. oil and gas industry. However, the President does not have the power to set production, but he has instructed the heads of the federal bureaucratic agencies to implement regulations restricting future production.

“Unfortunately, this administration continues to pursue policies designed to limit access to new production – most notably on federal lands and waters,” said Dustin Meyer, Senior Vice President of Policy, Economics and Regulatory Affairs at the American Petroleum Institute.

The U.S. is one of the few countries that allow private ownership of oil, gas, and minerals. The free market allows companies to develop these mineral rights when the economic and technological conditions are right.

U.S. oil production peaked in 1970 with an average of 9.6 million b/d and started declining, reaching bottom in 2008 at 5 million b/d. Technology was developed and perfected to produce large quantities from shale and production rose to 9.4 million b/d in 2015 and may reach 13 million b/d in 2023.

Energy production – whether it is oil, gas, coal, nuclear, wind, solar, or whatever – has advantages and disadvantages. Currently, oil and natural gas provide 80 percent of all the energy consumed globally, and they are expected to continue to be the major energy sources well into the future.

Alex Mills is the former President of the Texas Alliance of Energy Producers.