The latest data from the U.S. Energy Information Administration shows that the United States has produced “more crude oil than any country, ever,” for the past six years. U.S. crude production reached record levels in 2023, averaging 12.9 million barrels per day.
According to the EIA, crude oil production in the Permian Basin was the driving factor of the increases in total crude oil and natural gas production in the United States.
As EID has previously explained, U.S. oil and natural gas exports – critically, LNG – are key to ensuring energy security both on a domestic and global level in the wake of recent geopolitical market shocks.
As Didier Holleaux, President of trade association EuroGas, explains:
“[U.S.] LNG has been a relief for Europe and contributed to the stabilization of gas and electricity prices in Europe for consumers, after a long period of record high prices caused by the Russian supply drop.”
Despite record U.S. production, the latest International Energy Administration data demonstrates that methane emissions from oil and natural gas are set to go into decline. The analysis finds that fully implementing existing pledges on methane, such as the Oil & Gas Decarbonisation Charter agreed at COP28, would deliver the majority of all emissions cuts needed this decade to align with 1.5°C warming.
In fact, as Politico reports, the U.S. oil and natural gas industry is already seeing methane emissions decline despite this record production – including in the Permian Basin:
“Studies showed emissions decreasing across the Permian basin in Texas and New Mexico despite rising oil and gas production, IEA’s McGlade said.
“And emissions held steady or dipped despite an uptick in production in the Marcellus shale basin in Pennsylvania and the Denver-Julesburg basin across Colorado and Wyoming, said Russell Dickerson, a climate scientist at the University of Maryland.
‘The energy sector seems to be doing a pretty good job with engineering and implementing good engineering practices,’ Dickerson said.” (emphasis added)
As EID has previously explained, the U.S. energy industry takes great care to produce the cleanest gas anywhere in the world and operate responsibly, including by finding and eliminating leaks.
As the IEA global methane tracker shows, the U.S. recorded among the lowest levels of methane intensity among global oil-producing countries at just 0.2kg methane / GJ over 2023. For comparison, Turkmenistan recorded 1.6kg methane / GJ in 2023.
In addition, the 2023 Environmental Partnership report found that 70 percent of U.S. onshore oil and gas operators participating were able to reduce leak occurrence to 0.07 percent. Producers have also been able to reduce flaring by over half in the last two years, thanks to industry innovation.
Bottom Line: The United States continues to lead the way in fulfilling the increased global demand for energy, whilst not compromising on emissions reduction goals. With ongoing geopolitical uncertainty and instability in the energy markets, America’s role as the largest crude producer will continue to be of utmost importance to global energy security.
