The United States is producing more oil than any country in history

By Matt Egan, CNN  Tue December 19, 2023

Excerpt.  Link to complete article:  https://edition.cnn.com/2023/12/19/business/us-production-oil-reser...

Despite claims that President Biden has waged a war on American energy, the United States is pumping record amounts of oil.

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 oil than any country has in history.

The United States is set to produce a global record of 13.3 million barrels per day of crude and condensate during the fourth quarter of this year, according to a report published Tuesday by S&P Global Commodity Insights.

Last month, weekly US oil production hit 13.2 million barrels per day, according to the US Energy Information Administration. That’s just above the Donald Trump-era record of 13.1 million set in early 2020 just before the Covid-19 crisis sent output and prices crashing.

That’s been helping to keep a lid on crude and gasoline prices.

US output – led by shale oil drillers in Texas and New Mexico’s Permian Basin – is so strong that it’s sending supplies overseas. America is exporting the same amount of crude oil, refined products and natural gas liquids as Saudi Arabia or Russia produces, S&P said.

 “It’s a reminder that the US is endowed with enormous oil reserves. Our industry should never be underestimated,” said Bob McNally, president of Rapidan Energy Group.

Record-shattering US production is helping to offset aggressive supply cuts meant to support high prices by OPEC+, mainly Saudi Arabia and Russia. Other non-OPEC oil producers including Canada and Brazil are also pumping more oil than ever before. (Brazil is set to join OPEC+ next year.)

The strength of US output has caught experts off guard. Goldman Sachs analysts on Sunday cut their forecast for oil prices next year. The bank said the “key reason” behind the lowered forecast is the abundance of US supply.

Global demand for crude oil is set to hit a record in 2024 – but it will “easily be met” by the growth in supply, according to S&P’s projections.

Gas prices near $3

All of this has helped to keep oil prices relatively in check. After flirting with $100 a barrel earlier this year, crude has since tumbled back to the $70 to $75 range.

Energy prices have jumped this week after BP halted shipments through the Red Sea due to security concerns. Still, US oil is trading below $74 a barrel, well below where it was when Hamas attacked Israel on October 7.

Gas prices neared the psychologically important level of $4 a gallon in September. But prices at the pump have since fallen sharply, helping to ease inflationary pressure on the US economy.

The national average for a gallon of regular gas stood at $3.08 a gallon on Tuesday, down from $3.14 a year ago, according to AAA.