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US Oil Production Hits Record High in 2025 Despite Lower Prices

Created at 9 Jul · 5:55 PM1 source↑ Market-relevant
IN SHORT

U.S. crude oil production reached a record 13.6 million barrels per day in 2025, extending America's position as the world's largest producer. This growth occurred despite lower oil prices and highlights increased drilling productivity and efficiency, particularly in the Permian Basin.

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Key Numbers

13.6 million bpd2025 U.S. crude oil production average
13.2 million bpd2024 U.S. crude oil production record
40%U.S. output above Russia and Saudi Arabia
6.6 million bpd2025 Permian Basin production
4%Permian Basin production increase in 2025
$652025 WTI average price
$772024 WTI average price
13.7 million bpdExpected 2026 U.S. production
14.2 million bpdExpected 2027 U.S. production

Who's Involved

U.S. Energy Information Administration
Source of data on U.S. crude oil production
OPEC
Organization whose forecasts are defied by U.S. shale production
Russia
Second largest crude producer, surpassed by the U.S. in 2018
Saudi Arabia
Third largest crude producer
US Oil Production Hits Record High in 2025 Despite Lower Prices

↳ Why This Matters

The continued growth in U.S. oil production, even amidst lower prices and global supply overages, underscores the resilience and increasing dominance of American energy output. This strength provides a buffer against geopolitical supply disruptions, such as the current crisis in the Strait of Hormuz, and influences global energy markets and political dynamics.

Key facts

  • U.S. crude oil production averaged a record 13.6 million barrels per day in 2025.
  • This output was approximately 40% higher than Russia and Saudi Arabia combined.
  • The Permian Basin accounted for nearly half of total U.S. crude output.
  • The record was set despite lower average oil prices in 2025 compared to 2024.
  • Continued gains in drilling productivity and efficiency contributed to the production increase.

The United States achieved a new record for crude oil production in 2025, averaging 13.6 million barrels per day, according to data from the U.S. Energy Information Administration. This achievement extends the U.S.'s status as the world's largest crude producer, a position it has held since overtaking Russia in 2018.

The 2025 production figure surpassed the previous record of 13.2 million barrels per day set in 2024. Output from the Permian Basin, spanning Texas and New Mexico, was a significant contributor, rising 4% to 6.6 million barrels per day, which represents nearly half of the total U.S. crude output. This record was set despite a decrease in oil prices, with WTI averaging $65 per barrel in 2025, down from $77 in 2024, as global oversupply pressured the market.

U.S. operators were able to extract more crude through enhanced drilling productivity and improved efficiency in key shale basins. The EIA projects that U.S. crude production will remain strong, staying near 13.7 million barrels per day in 2026 and increasing to 14.2 million barrels per day in 2027, supported by anticipated price increases and ongoing shale productivity gains. The report also notes that the U.S. oil industry entered 2026 from a position of strength, which is relevant given the ongoing U.S.-Iran conflict and the closure of the Strait of Hormuz.

Frequently asked questions

U.S. crude oil production averaged a record 13.6 million barrels per day in 2025.

The Permian Basin, covering Texas and New Mexico, accounted for nearly half of the total U.S. crude output in 2025.

Despite lower prices, U.S. operators increased production through higher drilling productivity and efficiency.

The EIA expects U.S. production to remain near 13.7 million bpd in 2026 and rise to 14.2 million bpd in 2027.

What Happens Next

01U.S. crude production is expected to stay near 13.7 million bpd in 2026.
02U.S. crude production is projected to rise to 14.2 million bpd in 2027.

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How It Developed

U.S. crude oil production averaged a record 13.6 million barrels per day in 2025.
This figure surpassed the previous record of 13.2 million bpd set in 2024.
Production from the Permian Basin rose 4% to 6.6 million bpd, nearly half of total U.S. output.
The record was achieved despite WTI averaging $65 per barrel in 2025, down from $77 in 2024.
U.S. operators increased output through higher drilling productivity and efficiency.
The EIA expects U.S. production to remain near 13.7 million bpd in 2026 and rise to 14.2 million bpd in 2027.

Sources

T1
U.S. Oil Dominance Keeps Growing Despite Lower PricesOilPrice.com

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