U.S. crude oil output increased by 5.6%, or 0.6 million barrels per day (b/d), from 2021 to 2022, average 11.9 million b/d.
Texas and New Mexico, the two states that make up the Permian Basin, contributed most to the increase in U.S. crude oil output in 2022. Oil production in these two states is dominated by the Permian area, a prolific oil area that straddles the borders of western Texas and eastern New Mexico. For the third year in a row, New Mexico experienced the highest growth in crude oil output in the nation in 2022. A record amount of oil was produced in New Mexico, up 0.3 million barrels per day to 1.6 million.
The rest of the United States saw a 0.6% increase (33,000 b/d) in crude oil production. Of the eight states still producing at least 0.1 million b/d of oil in 2022, five saw a rise and three a fall in output from 2021.
Production in Alaska plummeted for the fifth year in a row, and production in California fell for the eighth year in a row. In 2022, oil output fell in North Dakota, which had been one of the states with the fastest growth during the previous ten years.
According to the Baker Hughes data, in 2022 there were 8 more land rigs in New Mexico, 100 more in Texas, and 85 more in all other states put together. Through the first week of May in 2023, there were 8 fewer land rigs in Texas and 5 more in New Mexico. In January and February 2023, U.S. crude oil production increased by an average of 1.2 million b/d year over year. In 2023 and 2024, we predict that U.S. crude oil production will continue to rise.
According to May Short-Term Energy Outlook, Fed anticipate that total US crude oil production will increase to 12.5 million b/d in 2023 and further to 12.7 million b/d in 2024.