January U.S. crude oil production was down 305,000 barrels per day, hitting 13.15 million bpd, a level it hasn’t dipped down to in over a year, according to data released by the U.S. Energy Information Administration (EIA) on Monday, also revising its December estimate downward by around 40,000 barrels, to 13.45 million bpd.
The top producer, Texas, saw a decline of 105,000 bpd, sitting at 5.58 billion bpd and its largest decline in 15 months, while the country’s number two producer, New Mexico, saw output fall by 53,000 bpd to 2.06 million bpd–also its lowest level in seven months.
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U.S. production of natural gas also fell 1.7% in January.
Despite the downward trajectory, earlier this month, the EIA reported that the U.S. set a record for crude oil production in 2023, averaging 12.9 million barrels per day (b/d), surpassing the previous global and U.S. record of 12.3 million b/d set in 2019. No other countries breached the 13 million b/d capacity, and the Saudis recently withdrew their plans to boost production to 13 million b/d by 2027.
In 2023, the U.S., Russia, and Saudi Arabia together accounted for 40% of global oil production, totaling 32.8 million b/d, according to the EIA.
Raw data is often competing for space in reality with headlines and statements from the Trump administration, which has been the single-biggest market mover this month, as noted by Oilprice.com’s Michael Kern. Declining production is not compatible with a tightening of Venezuela sanctions and the imprisoning of 20 million barrels of Iranian oil, not to mention the long-term impacts of looming tariff wars.
By Charles Kennedy for Oilprice.com
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