United States leads global crude oil production
The Energy Information Administration (EIA) estimates the United States likely surpassed Russia and Saudi Arabia as the world’s largest crude oil producer earlier this year.
EIA officials are basing the assessment on estimates in the agency’s Short-Term Energy Outlook (STEO). In February, U.S. crude oil production exceeded that of Saudi Arabia for the first time in more than two decades while in June and August, the United States surpassed Russia in crude oil production for the first time since February 1999.
The EIA is expecting U.S. crude oil production will continue to exceed Russian and Saudi Arabian crude oil production for the remaining months of 2018 and through 2019, adding American crude oil production, particularly from light sweet crude oil grades, has rapidly increased since 2011.
Officials attribute the U.S. crude oil production ascent to recent growth occurring in areas such as the Permian region in western Texas and eastern New Mexico, the Federal Offshore Gulf of Mexico, and the Bakken region in North Dakota and Montana.
The oil price decline in mid-2014 resulted in U.S. producers reducing costs and temporarily scaling back crude oil production, officials said. However, after crude oil prices increased in early 2016, investment and production began increasing later that year.
