U.S. crude oil production averaged 13.3 million barrels per day in December 2023, following sustained productivity increases at new wells, according to our latest. U.S. crude oil production has increased to record highs since 2010 and has risen even more quickly in recent months. These record highs have come despite declining U.S. drilling activity because the new wells are more efficient.
The number of new wells brought on line by drilling activity has historically been the key determinant of whether crude oil production increases or decreases. However, advances in horizontal drilling andtechnologies have increased well productivity, enabling U.S. producers to extract more crude oil from new wells drilled while maintaining production from legacy wells. shows more production from a combination of increasing new well production and higher sustained legacy well production.
The rig count is the number of active oil rigs in the United States as published by Baker Hughes. Traditionally, the number of active oil-directed rigs is a leading indicator of future crude oil production because more active rigs can drill more new wells. Recently, U.S. crude oil production has increased because of technological advancements and efficiency gains despite a 69% decrease in the number of active rigs since 2014.