U.S. energy production set records in 2023

U.S. Energy Production Set Records in 2023

Energy production in the U.S. set records in 2023 and 2024 looks even better.

The U.S. produced more crude oil than in any country in history at 13 million barrels per day (b/d). Natural gas, wind and solar had a record-setting year, too.

Investors are taking notice.

Oil company stocks, which were dismal mid-year 2023, began to reverse in January.  The stock of both of the U.S. based intergraded oil companies have increased. ExxonMobil opened at $100 in January and closed at $119 April 2, and Chevron is up 7% from $149 to $159.

Many independent exploration-and-production (E&P) companies also have increased stock values this year. Marathon Oil Corp. and Diamondback Energy are leading the group jumping 39% and 29%, respectively. Marathon opened the year at $152 per share and rose to $211 on April 2. Diamondback went from $155 to $200.

Other E&P companies showing double-digit increases are Pioneer Natural Resources, at 17%; Devon, at 13%; ConocoPhillips, at 12%; and Occidental Petroleum, at 12%.

Many factors can be attributed to the recent interest in these companies by investors included projected growth in global demand, reduced supply of petroleum from OPEC+, increased supply from U.S. companies, and international conflicts especially in Europe and Middle East.

Crude oil and petroleum products and natural gas are by far the leading source of energy in the U.S. Fossil fuels (oil, natural gas, and coal) produced 84% of the energy in the U.S. in 2023, according to the Energy Information Administration at the U.S. Department of Energy. Nuclear and renewables (wind, solar, hydroelectric, wood, waste and biomass) produced 8% each. Wind produced 3.9% and solar produced 1.9%.

However, wind and solar have made some gains recently.

The U.S. solar industry added 6.6 gigawatts (GW) of new electric generating capacity in the third quarter of 2023, a 35% year-over-year increase, according to a report from the Solar Energy Industries Association (SEIA).

“As a result of this growth, the United States is expected to add a record 33 GW of solar capacity in 2023,” the report stated.

EIA expects solar electric generation will account for 7% of total U.S. electricity generation in 2025. “Developers have reported that almost 80 GW of solar power will come online over the next two years, increasing U.S. solar generating capacity by 84% and making solar the leading source of growth in U.S. electricity generation through 2025,” EIA stated.

“We are experiencing a significant shift in U.S. electric generation, as solar generation grows rapidly, taking market share from coal and tempering the growth in natural gas usage,” EIA Administrator Joe DeCarolis said. “Coal and natural gas remain important to the U.S. electric grid, even as variable renewable resources such as solar and wind grow.”

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

Author Profile
Contributor

Alex Mills is the former President of the Texas Alliance of Energy Producers. The Alliance is the largest state oil and gas associations in the nation with more than 3,000 members in 305 cities and 28 states.

 

3 Ways Technology is Going to Shape the Oil and Gas Industry Free to Download Today

Oil and gas operations are commonly found in remote locations far from company headquarters. Now, it's possible to monitor pump operations, collate and analyze seismic data, and track employees around the world from almost anywhere. Whether employees are in the office or in the field, the internet and related applications enable a greater multidirectional flow of information – and control – than ever before.

Related posts