The United States is the world's largest crude oil producer, a position it has held since 2018. Look at how US oil production has changed over the past five decades and you see decline, technological revolution, and record-breaking growth -- all of it relevant to energy investors.
Below you will find historical US oil production data by year, the forces driving output, and what current production trends mean if you are considering direct participation in oil and gas.
US Oil Production Overview
In 2024, the United States produced approximately 13.2 million barrels of crude oil per day -- a new all-time record. That puts the US well ahead of Saudi Arabia (approximately 9 million bbl/day) and Russia (approximately 9.5 million bbl/day), and gives it 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 fell steadily for nearly four decades as conventional reservoirs matured and depleted. By 2008, US production sat at roughly 5 million barrels per day -- a level not seen since the 1940s.
Then the shale revolution flipped the trend. Advances in hydraulic fracturing and horizontal drilling unlocked 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 supports 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.
| Year | Production (Million bbl/day) | Key Context |
|---|---|---|
| 1970 | 9.6 | Previous all-time peak; conventional production era |
| 1985 | 8.9 | Post-embargo decline; Alaska North Slope partially offsets lower-48 losses |
| 2000 | 5.8 | Multi-decade decline continues; rising import dependence |
| 2008 | 5.0 | Near-historic low; shale drilling begins to scale |
| 2014 | 8.8 | Shale boom accelerates; production nearly doubles in 6 years |
| 2019 | 12.3 | Pre-pandemic record; US becomes world's largest producer |
| 2020 | 11.3 | COVID-19 demand shock; operators shut in wells |
| 2023 | 12.9 | Full post-pandemic recovery; new record set |
| 2024 | 13.2 | All-time record; sustained Permian Basin growth |
| 2025 | 13.4 (est.) | EIA Short-Term Energy Outlook forecast |
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
No single development has reshaped American energy more in the past half-century. Two technologies made it possible: hydraulic fracturing (fracking), which pumps 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 penetrating only a narrow vertical column.
Together, these methods unlocked enormous volumes of oil from tight shale formations that geologists had long known held hydrocarbons but could not produce at a profit. The Permian Basin in West Texas and New Mexico became the center of 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.
The shale revolution did more than increase supply. It rewrote the economics of US oil production. 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 one reason the future of oil and gas holds up despite energy transition narratives.
Top Oil Producing States
Most US oil comes from a handful of states with prolific geological basins and well-defined regulatory frameworks. The table below shows approximate 2024 daily production by state.
| Rank | State | Approx. Production (bbl/day) | Key Basin(s) |
|---|---|---|---|
| 1 | Texas | 5,800,000 | Permian, Eagle Ford |
| 2 | New Mexico | 2,000,000 | Permian (Delaware Basin) |
| 3 | North Dakota | 1,200,000 | Bakken, Three Forks |
| 4 | Alaska | 430,000 | North Slope, Cook Inlet |
| 5 | Oklahoma | 400,000+ | SCOOP, STACK, Anadarko |
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. The state's business-friendly regulations, established infrastructure, and lower per-acre drilling costs make it appealing for operators and investors alike. BassEXP runs its current drilling projects in Oklahoma's most productive formations.
Major US Oil Basins
Most US oil production comes from a few world-class geological basins. Each one has distinct characteristics that affect drilling costs, well productivity, and investment returns.
Permian Basin (Texas & New Mexico)
The largest and most prolific oil basin in the United States, producing over 6 million barrels per day. The Permian includes multiple stacked pay zones including the Wolfcamp, Bone Spring, and Spraberry formations, allowing operators to drill multiple wells from a single surface location. The Permian has driven the majority of US production growth over the past decade.
Approx. Production: 6,000,000+ bbl/day
Bakken (North Dakota & Montana)
The Bakken formation was the first major US shale play to demonstrate commercial-scale production using horizontal drilling and fracking. Production peaked at approximately 1.5 million barrels per day in 2019 before moderating slightly. The Bakken remains a significant contributor to total US output.
Approx. Production: 1,200,000 bbl/day
Eagle Ford (South Texas)
The Eagle Ford shale produces both oil and natural gas liquids from a relatively narrow band across South Texas. It was one of the fastest-growing shale plays during the early 2010s and continues to produce approximately 1 million barrels per day. The Eagle Ford is known for higher-quality crude that commands premium pricing.
Approx. Production: 1,000,000 bbl/day
SCOOP/STACK (Oklahoma)
The South Central Oklahoma Oil Province (SCOOP) and the Sooner Trend Anadarko Basin Canadian and Kingfisher Counties (STACK) are Oklahoma's premier oil and gas plays. These formations target the Woodford shale and Meramec limestone and produce a mix of oil, natural gas, and natural gas liquids. BassEXP drills in Oklahoma's most productive formations and offers qualified investors direct working interest participation.
Approx. Production: 400,000+ bbl/day (Oklahoma total)
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
US oil production is not determined by any single factor. Four primary forces interact to determine how much crude the country produces in any given year.
Commodity Prices
Oil prices directly affect drilling economics. When WTI crude is above $60-70 per barrel, the vast majority of US shale acreage is profitable to drill. At lower prices, operators reduce drilling activity, and production growth slows or reverses. The 2020 price collapse, when WTI briefly went negative, led to widespread well shut-ins and a sharp production decline.
Technology & Efficiency
Steady improvements in drilling technology, well completion techniques, and data analytics have cut costs and raised per-well output. Longer lateral lengths, multi-well pad drilling, and better proppant designs all contribute to higher productivity per dollar invested. These efficiency gains let US producers maintain output even at moderate oil prices.
Regulatory Environment
Federal and state regulations affect permitting timelines, environmental requirements, and access to drilling locations. States like Texas, Oklahoma, and North Dakota have well-established oil and gas regulatory frameworks that balance environmental protection with efficient permitting. Federal policy on public lands leasing and emissions standards also influences production levels.
Capital Investment
Oil production requires substantial upfront capital for land acquisition, drilling, and completion. After the 2020 downturn, many operators shifted to capital discipline, returning cash to shareholders rather than aggressively reinvesting in new drilling. This shift has moderated production growth rates compared to the pre-2020 boom but has improved operator profitability and financial stability.
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 is not just a macroeconomic headline. It has real implications for individual investors looking at the oil and gas sector. Here are the trends worth watching.
- 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.
Invest in US Oil Production
BassEXP offers qualified investors direct working interest participation in active Oklahoma drilling programs. See how record US oil production creates opportunity for tax-advantaged energy investment.
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