Despite there being fewer active rigs in the US, oil production is continuing to gather pace and reach new records, according to new data from the Energy Information Administration (EIA).
The EIA estimates that some 13.12 million barrels per day (bpd) have been pumped on average this year. This is up from the record of 12.93 million bpd set last year and 7.1% more than the same period in 2023.
The rise comes despite there being 14% fewer rigs drilling for oil than there was at the same time last year, indicating that operators are achieving better yields from each rig on average.
With West Texas Intermediate (WTI) crude oil fetching 7% more than last year at around $85 per barrel, operators should also be motivated to continue production.
ExxonMobil, the maker of Mobil grease and coolants, is also planning to increase its US production. This is following the acquisition of Pioneer Natural Resources and its extensive assets in the Permian Basin, which it says complement its own portfolio of assets.
Natural gas production in the US is also following a similar trend, although data is published less frequently for this. Despite a greater drop in the number of gas rigs (35%), gas production in January was 124.6 billion cubic feet per day, some 1.1% more than in January 2023.
Technological advancements and changing practices seem to be continuing to drive production growth in the US, and with oil prices staying relatively high, this growth will likely continue.
