U.S. Shatters Oil Production Records

The United States has produced more crude oil than any nation at any time for the past six years in a row.

Despite federal regulations and executive orders aimed at impeding the industry’s growth, the U.S. production has set unprecedented records, reaching a high of 13,319,000 barrels per day (bpd) in November 2023.

Average annual production in Russia peaked in 2019 at 10.8 million b/d and average annual production in Saudi Arabia peaked in 2022 at 10.6 million b/d.

Put simply, America is the unchallenged leader of the global energy market.

Behind this ongoing surge in U.S. oil production lies falling costs, major technological advancements, and improved drilling efficiency.

Interestingly, the continued increase in production comes amid a 25% drop in the active rig count over the past 15 months.

A recent report from the EIA reveals the recent evolution of U.S. oil production:

“After peaking at 9.6 million b/d in 1970, annual U.S. crude oil production flattened and then generally declined for decades to a low of 5.0 million b/d in 2008. Crude oil production in the United States began increasing again in 2009, as producers increasingly applied hydraulic fracturing and horizontal drilling techniques, and has increased steadily since.”

Regardless of your economic or political persuasion, the surge in U.S. oil production is impressive and represents a pivotal moment for investors.

The ongoing wars in Eastern Europe and the Middle East continue to pose a threat to global energy security, which partially explains why oil prices have been on the rise.

Over the last couple of months, we have been detecting and issuing new Position uptrend alerts on many oil-related ETFs. Members can view which oil ETFs we track in our ETF Leaderboard.

While we expect oil prices to remain muted this year, we do expect well-run oil companies to continue to thrive in 2024 and beyond.

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