The United States has achieved a new milestone in oil production, according to recent government data. The US Energy Information Administration (EIA) reported that during the week ending August 2, American oil companies pumped an average of 13.4 million barrels per day from domestic oil fields.
This figure surpasses the previous record of 13.3 million barrels per day, which had been reached multiple times earlier this year.
This achievement marks the continuation of a long-term upward trend in US oil production that began in 2008. The country set an annual record peak in 2023, which is likely to be surpassed again this year. The increase in production has solidified the United States’ position as the world’s largest oil and gas producer.
Industry analysts note that oil companies have become more efficient in their operations. Despite a decrease in the number of active drilling rigs compared to last year, production levels have continued to rise. This improved efficiency is attributed to advancements in drilling technology and techniques.
The record output comes at a time when global oil supply dynamics are shifting. As OPEC+ countries, including Russia, have reduced their production in recent years, the United States and other non-OPEC+ producers have stepped in to fill the gap in the global market.
While US production has reached new heights, domestic gasoline prices remain higher than pre-pandemic levels. However, the national average for regular gasoline has decreased to $3.44 a gallon, its lowest since June.
This decline is attributed to soft demand for gasoline, with US consumption falling from 9.25 million barrels per day to 8.97 million barrels per day in the week ending August 2.
Industry experts caution that several factors could potentially drive prices up again. Escalating tensions in the Middle East and the ongoing hurricane season pose risks to oil and gas prices. Additionally, OPEC has recently lowered its demand forecast, partly due to concerns over China’s economy.
Information for this story was found via EIA, AAA, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
