US Oil Production by Year: Historical Data & Investor Analysis

The United States is the world's largest crude oil producer and has held that spot since 2018. Zoom out across five decades and the story jumps off the page: decline, technological revolution, and record-breaking growth -- all of it directly relevant to energy investors.

Below you'll find historical US oil production data by year, the forces driving output, and what current production trends mean if you're considering direct participation in oil and gas.

US Oil Production Overview

In 2024, the United States pumped approximately 13.2 million barrels of crude oil per day -- a new all-time record. That's well ahead of Saudi Arabia (approximately 9 million bbl/day) and Russia (approximately 9.5 million bbl/day), giving the US outsized influence on global energy pricing.

The numbers tell a 50-year story. After peaking at 9.6 million barrels per day in 1970, output slid for nearly four decades as conventional reservoirs matured and depleted. By 2008, US production had dropped to roughly 5 million barrels per day -- a level the country hadn't seen since the 1940s.

Then shale flipped the trend. Hydraulic fracturing and horizontal drilling cracked open vast reserves of tight oil in the Permian Basin, Bakken, and Eagle Ford. Within a decade, the United States more than doubled its output and overtook every other producing nation. For investors, that sustained production growth backs the long-term viability of domestic oil and gas investments. Direct participation also offers significant tax benefits for oil investors, including first-year IDC deductions and the 15% depletion allowance.

US Oil Production by Year

The table below shows US crude oil production for key years from 1970 through 2025. Data is sourced from the U.S. Energy Information Administration (EIA) and reflects annual average daily production in millions of barrels per day.

The data tells a clear story: US oil production collapsed from its 1970 peak, bottomed out around 2008, and then surged to unprecedented levels over the following 15 years. The 2020 COVID dip was sharp but temporary. Production recovered within two years and has since set consecutive records.

For detailed forecasts, see our coverage of the EIA Short-Term Energy Outlook (STEO) reports, which provide monthly production projections updated by the U.S. Energy Information Administration.

The Shale Revolution: How US Production Changed

Nothing has reshaped American energy more in the last 50 years. Two technologies made it happen: hydraulic fracturing (fracking), which blasts high-pressure fluid into rock to crack it open and release trapped hydrocarbons, and horizontal drilling, which lets a single wellbore reach miles of reservoir laterally instead of punching only a narrow vertical column.

Together, they unlocked enormous volumes of oil from tight shale formations that geologists had long known held hydrocarbons but couldn't produce at a profit. The Permian Basin in West Texas and New Mexico became ground zero for this shift, growing from roughly 1 million barrels per day in 2010 to over 6 million barrels per day by 2024.

The Bakken formation in North Dakota and Montana contributed the initial wave of shale production growth, followed by the Eagle Ford in South Texas. Oklahoma's SCOOP and STACK plays emerged as significant producers as operators applied shale techniques to the Woodford and Meramec formations.

Shale did more than increase supply. It rewrote the economics. Breakeven costs in top-tier Permian acreage have dropped below $40 per barrel, keeping domestic production profitable even when prices sag. That cost structure is a big reason the future of oil and gas holds up despite energy transition narratives.

Top Oil Producing States

A handful of states with prolific geology and clear regulatory frameworks produce most US oil. The table below shows approximate 2024 daily production by state.

Texas alone accounts for approximately 44% of total US crude oil production, driven primarily by the Permian Basin. New Mexico has risen rapidly in the rankings as Permian drilling expanded into the Delaware Basin portion of the state.

Oklahoma ranks fifth by volume, but it punches above its weight as an investment market. Business-friendly regulations, established infrastructure, and lower per-acre drilling costs make it attractive for operators and investors alike. BassEXP runs its current drilling projects in Oklahoma's most productive formations.

Major US Oil Basins

A few world-class geological basins account for most US production. Each has distinct characteristics that shape drilling costs, well productivity, and what investors can expect.

If you want to dig into the terms and concepts behind basin analysis, start with our glossary entry on shale and upstream operations.

What Drives US Oil Production

No single factor sets US production levels. Four forces interact to determine how much crude the country pulls in any given year.

Track real-time commodity pricing and active rig counts on our Commodity Prices & Rig Count page to see how these factors are affecting current drilling activity.

What US Oil Production Trends Mean for Investors

Record US oil production isn't just a macroeconomic headline. It has real implications for individual investors considering the oil and gas sector. Here are the trends worth tracking.

• Energy Independence Strengthens Investment Fundamentals: Record domestic production cuts US reliance on foreign oil and creates a more stable operating environment for domestic producers. Investors in US oil and gas benefit from predictable regulations and established infrastructure.
• Capital Discipline Improves Operator Quality: Since 2020, operators have prioritized financial stability and returns over growth at any cost. For investors, that means better-run programs with more realistic projections and tighter cash flow management.
• Supply Constraints Create Pricing Support: While production is at record levels, growth rates have moderated due to capital discipline and maturing Tier 1 drilling locations in some basins. OPEC+ production cuts and geopolitical supply risks provide additional pricing support that benefits US producers.
• Tax-Advantaged Direct Investment: The US tax code still offers significant incentives for direct oil and gas investment, including intangible drilling cost deductions, depletion allowances, and the ability to offset active income with working interest losses. We break these down in our guide to oil and gas investing.
• Proven Basins Reduce Exploration Risk: With decades of production data available across established basins, operators can drill development wells in de-risked formations with known production histories. This approach, which BassEXP uses in Oklahoma, reduces the geological risk compared to frontier exploration.

For a closer look at long-term energy demand and why oil and gas remain essential, read our page on why invest in oil and gas.