Texas is by far the largest oil-producing state in the United States. In 2024, Texas produced a total of over two billion barrels. In a distant second place is New Mexico, which produced 744.6 million barrels in the same year. Virginia is the smallest producing state in the country, at three thousand barrels. Macro perspective of U.S. oil production The U.S. oil production totaled some 19.4 million barrels of oil per day, or a total annual oil production of 827 million metric tons in 2023. As the largest oil producer in the U.S., it is not surprising that Texas is home to the most productive U.S. oil basin, the Permian. The Permian has routinely accounted for at least 50 percent of total onshore production. Regional distribution of U.S. oil production A total of 32 of the 50 U.S. states produce oil. There are five regional divisions for oil production in the U.S., known as the Petroleum Administration for Defense Districts (PADD). These five regional divisions of the allocation of fuels derived from petroleum products were established in the U.S. during the Second World War and they are still used today for data collection purposes. In line with the fact that Texas is by far the largest U.S. oil producing state, PADD 3 (Gulf Coast) is also the largest oil producing PADD, as it also includes the federal offshore region in the Gulf of Mexico. There are around 590 operational oil and gas rigs in the country as of February 2025.

ExxonMobil ranks first among the United States' top ten oil and gas producing companies based on market capitalization. As of June 18, 2025, the Texas-based oil supermajor had a market cap of ****** billion U.S. dollars. ExxonMobil can not only trace its roots back to the early years of commercial oil production, it has also become one of the largest oil and gas companies in the world. It is active in all areas of the supply chain, from hydrocarbon extraction to retailing of gasoline. What is market cap? As opposed to sales or assets, market capitalization is a metric used to determine a company’s size by the worth of their outstanding shares on the stock market. ExxonMobil often ranks as the leading oil and gas company based on market cap worldwide. However, its net income is often significantly lower than that of state-owned entities such as Saudi Aramco. The differing ratios exemplify how market cap is not a hard figure like net profits, but inflates and fluctuates according to the perceived value of a company, influenced by less quantifiable factors. The role of oil and gas in the world economy The oil and gas industry is involved in exploration, extraction, refining, transport, and marketing of hydrocarbons. Many industries are extremely dependent on oil and gas products, mostly in the form of fuels or raw materials for chemical products. The oil and gas industry is one of the largest worldwide, and it would follow that companies involved within the industry are among the top companies worldwide by revenue.

ExxonMobil is the largest United States-based oil and gas producing company. As of December 2024, ExxonMobil's revenues amounted to ****** billion U.S. dollars. ExxonMobil’s revenue was significantly higher than its competitors, earning nearly *** billion U.S. dollars more than Chevron, which ranked second that same year. ExxonMobil’s main operations and locations Based in Irving, Texas, ExxonMobil is consistently ranked as one of the top oil and gas companies worldwide based on revenue. The company has early origins in John D. Rockefeller’s Standard Oil Company from the 1880s but became the entity it is today when two major oil companies, Exxon and Mobil, merged in 1999. The company is one of the leading global oil refiners, with refineries in 21 countries. The majority of ExxonMobil's refining capacity is in North America and Europe. Impact of 2022 rise in oil prices ExxonMobil's revenue has seen a stark rise this decade. While a 2020 slump followed impacts of the pandemic on economic activity and outlooks, revenues have more than doubled since then. As a result of rising oil prices, ExxonMobil regained its position among the largest ten companies by revenue worldwide along with other major oil producers and refiners.

The United States is the world's largest crude oil producer. In 2023, it had an output of 19.4 million barrels worth of oil per day. This was nearly 12 million barrels more than in 2010 and largely a result of advances in unconventional tight oil production. Saudi Arabia and Russia ranked second and third, at around 11.4 and 11.1 million barrels daily respectively. Oil production includes crude oil, shale oil, oil sands, and natural gas liquids. Distribution of U.S. oil production The U.S. is divided into five regional divisions for oil production, known as Petroleum Administration for Defense District’s (PADD), which were created during World War II. The main goal was to organize the allocation of fuels from petroleum products and for data collection purposes these regions are still currently used. Out of all PADD's, PADD 3, including the Gulf Coast states, has recorded by far the largest daily crude oil production, at some 7.9 million barrels in 2021. By comparison, PADD 1 (East Coast) production volumes were 74 thousand barrels per day. The importance of PADD 3 to the country’s overall oil output is hardly surprising as Texas is by far the state with the largest crude oil production. U.S. natural gas production Besides being the world's largest oil producer, the U.S. is also the world’s largest natural gas producer. It produced over 934 billion cubic meters in 2021, despite ranking fifth in terms of proved natural gas reserves .

In 2024, the majority of oil worldwide was produced in the Middle East, which accounted for around **** percent of the global output that year. Home to large hydrocarbon reserves, many of the world’s largest petrostates are located here. North America was the second largest oil producer, followed by the Commonwealth of Independent States. Global crude oil production In 2024, global oil production stood at almost ** million barrels per day. Amongst the various crude oil producing countries in the world, the United States came in first, accounting for nearly ** percent of global oil production in 2022. In comparison, Algeria was in the last position, accounting for only *** percent of the global oil production. Global oil companies Saudi Aramco, the state-owned petroleum and natural gas company in Saudi Arabia, is one of the top oil companies in terms of daily crude oil production, with a daily production volume of nearly **** million barrels per day. In contrast, Sinopec, a Chinese oil company, which largely focuses on refining, reported a daily production of ******* barrels. Due in part to its position as refining leader, Sinopec claimed the highest revenue among global oil and gas companies, reaching nearly *** billion U.S. dollars in 2023.

This statistic displays the crude oil production in the United States from 2017 to 2019, by Petroleum Administration for Defense District (PADD). PADDs were created during World War II (under the Petroleum Administration for War) in order to help organize the allocation of fuels from petroleum products (gasoline, diesel, etc.). For data collection purposes these regions are still used today.

In 2019, PADD 3 (Gulf Coast), which includes the oil production in Alabama, Arkansas, Louisiana, Mississippi, New Mexico, and Texas, was the largest oil producing PADD, having produced some 2.95 billion barrels of crude oil.

In 2023, the United States produced a total of 827.1 million metric tons of oil, making it the leading oil-producing country in the world. The U.S. was also the largest oil-consuming country, with a consumption of nearly 19 million barrels of oil per day in 2023. Rise of unconventional oil production The U.S. has been the world's largest oil producer since 2018. Its ever increasing oil output has been made possible by the development of technologies allowing extraction from previously inaccessible deposits. The U.S. is the country with the largest unconventional oil resources, held largely in the form of kerogen (shale oil). Oil as a raw material Oil is one of the most widely used raw materials, such as for the manufacturing of transportation fuels, pharmaceuticals, and plastics. When breaking down the many products made of one barrel of crude oil, gasoline and diesel constitute the largest product group. Despite the economic events in 2008, 2009, and 2020 that impacted global oil use, daily global crude oil demand saw a net increase since 2006 and is forecast to grow even further.

In 2023, the United States consumed nearly 19 million barrels of oil daily. In comparison to the previous year, figures increased by around 0.6 percent. Within the period of consideration the figure peaked at 20.8 million barrels of oil daily in 2005. The U.S. is the country with the highest oil consumption in the world. Domestic production U.S. oil production saw a noticeable growth after the Great Recession, as the energy industry developed extraction technologies to reduce the need to import high-priced oil. In 2021, domestic production amounted to 16.6 million barrels per day, while figures in 2008 stood at 6.8 million barrels per day. Texas is by far the leading crude oil producing state, with an annual production of two billion barrels in 2023. New Mexico was the second largest producer, at a quarter of Texas’ production. American oil companies As of June 2024, ExxonMobil had the highest market capitalization of any oil and gas producer in the world. Chevron and ConocoPhillips were also among the top 10 oil and gas companies worldwide based on market value, ranking second and seventh, respectively. ExxonMobil was founded in 1999, as a merger of Exxon and Mobil, formerly the Standard Oil Company of New Jersey and Standard Oil Company of New York, respectively. ExxonMobil is headquartered in Irving, Texas (although it has recently announced it will move it's headquarters further South to its Houston campus) and generated an operating revenue of 344 billion U.S. dollars in 2023. This figure represented an increase in comparison to 2021, when the company’s revenue dropped as a consequence of the coronavirus pandemic.

US barrels of oil per day production is a crucial indicator of a country's oil production capacity, influencing energy markets, economic growth, and global geopolitics. This article explores the historical trends, factors impacting production, and the recent shale revolution that propelled the US to become the world's largest oil producer.

Shale gas and tight oil production in the United States is forecast to increase to more than 35 trillion cubic feet by 2050, up from 29.4 trillion cubic feet in 2024. Shale gas refers to natural gas that is trapped within dense shale formations. Tight oil is crude oil contained in such rock formations. It is extracted by drilling wells and pumping a sand, water, and chemical mixture into the rock. The pressure under which the mixture is pushed into fissures cracks the rock open, allowing for the gas and oil to be removed. Origins of U.S. shale gas production The extraction of shale gas and tight oil in the U.S. has increased dramatically since 2000; from about 1.77 trillion cubic feet to over 29 trillion cubic feet in 2024. The economic viability of shale exploration is a result of technological advances in horizontal drilling and hydraulic fracturing (fracking), as well as a surge in oil benchmark prices in the late 2000s and early 2010s. China's fast-growing economy meant it required ever greater amounts of petroleum products, while the largest oil producing body, OPEC, tightly controlled production output in order to push prices higher. This led to the WTI crude oil price climbing to an annual average of nearly 100 U.S. dollars in 2008, despite the onset of the financial crisis. Although early shale pioneer Mitchell Energy had experimented with horizontal drilling and fracking, it took until the 2000s for the technology to hit off. Shale gas production is concentrated primarily in regions such as the Northeast and the Gulf Coast, with Appalachia being the most productive U.S. natural gas region. Fossil fuel reserves in the U.S. The United States had 17.4 trillion cubic meters of proved natural gas reserves, as of 2023. The North American country ranked fourth among the leading countries by proved natural gas reserves. Russia led the ranking with over 44 trillion cubic meters. The same year, U.S. oil reserves amounted to over 47 billion barrels, more than double the amount in 2000.

Discover the dramatic increase in crude oil production in the United States, driven by advancements in drilling technology and increased exploration of unconventional oil reserves. Learn how the country became the world's largest crude oil producer and the key states contributing to its output.

The United States accounts for **** percent of global crude oil production, making it the largest oil producing country in the world. Crude oil production includes crude oil, shale oil, oil sand and NGLs (natural gas liquids: liquid content of natural gas in which the condensate is recovered separately). It excludes liquid fuels from other sources such as biomass and coal derivatives. Global crude oil supply Apart from the United States, Saudi Arabia and Russia are among the world’s largest producers of crude oil, each accounting for a share around ** percent. Saudi Arabia's oil production has amounted to roughly ********** barrels of oil per day for the past few years. Unsurprisingly, these countries are also some of the world’s largest oil consumers. Saudi Arabia consumes around ************ barrels per day, while the U.S. uses about ********** barrels. U.S. oil trade In the past, the U.S. relied heavily on oil imports from OPEC member countries like Saudi Arabia. However, due to an increase in domestic production output following technological advances, U.S. crude oil imports decreased by over one third since 2005. Conversely, U.S. petroleum exports skyrocketed, reaching ************ barrels per day in 2024.

In 2024, global crude oil production amounted to approximately ************ metric tons. This was the largest amount that had ever been produced and nearly *********** metric tons more than oil produced in 1998. Which countries extract the most oil? The United States is the largest oil producing country in the world. Profiting off advances in horizontal drilling and shale extraction, the U.S. has succeeded OPEC-affiliated countries, such as Saudi Arabia, in becoming the world's greatest supplier of crude oil. Oil production in the United States The U.S. has been producing oil since the 1850s. U.S. oil production initially decreased until 2008, but has been steadily increasing since. Texas is by far the U.S. state that produces the most crude oil. It is home to the Permian Basin and Eagle Ford shale play, two of the most important petroleum-rich locations in the country. The U.S. also operates numerous rigs located offshore in the Gulf of Mexico, which contribute significantly to overall oil and gas production.

The United States produced the most oil in the world in 2023, at around 19.4 million barrels of oil per day on average. Saudi Arabia and Russia followed as the second and third largest producers, and also rank amongst the top countries with highest oil exports. OPEC production share Many of the top oil-producing countries belong to the Organization of the Petroleum Exporting Countries, also known as OPEC. The group was founded in 1960 by five original members: Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. As of 2021, 15 nations belong to OPEC, and the organization holds powerful influence on the prices of oil, with some 37 percent of the total global share of crude oil production coming from OPEC. Increased production in the United States The United States was not always the largest producer of oil, but imported oil at higher rates before the 2008 financial crisis. As foreign oil prices peaked during the Recession, investors sought to develop technology to extract more oil domestically, notably through hydraulic fracturing. Since then, oil production in the United States has nearly doubled, reducing the need for imports.

Petroleum refiners have experienced volatile conditions in recent years since crude oil is the primary input cost for refiners in the United States. Crude oil is a highly volatile commodity as a result of its sensitivity to microeconomic and macroeconomic factors, including volatile production, demand and the health of global economies. As petroleum refiners pass these prices to customers, industry returns see similar volatility. With an uptick in crude oil prices through 2025, industry revenue has pushed up at a CAGR of 16.5% to an estimated $821.8 billion, including a 3.3% dip in 2025 alone. The period started slow, as the pandemic weakened global productivity, cutting down the need for petroleum-based products like fuel. As the economy recovered, so did prices, allowing refineries to exhibit double-digit growth in 2021 and 2022. As prices came down, revenue eventually fell slightly. Nonetheless, these volatile conditions caused some companies to exit the industry. High barriers also discouraged new entrants, so most of the period was marked by expanding existing facilities rather than building new ones. This results in a high concentration of refineries, predominantly located along the Gulf Coast in Texas, Louisiana and California. Unlike standalone refiners, large integrated companies manage crude oil reserves to mitigate price volatility, maintaining stable profitability despite oil price fluctuations. Petroleum refiners face long-term challenges from the transition to green energy, driven by more investment in renewables and electric vehicle infrastructure from the Inflation Reduction Act. As the need for motor gasoline falls with the rise of electric cars, refineries may shift towards carbon capture technologies and chemical production to remain viable. While many refineries have closed recently, some may convert to renewable fuel facilities, as seen in Marathon's partnership with Nestle. Despite these challenges, the US remains a global leader in oil production, so refineries will still exhibit slight growth moving forward. Overall, revenue is set to push up at a CAGR of 0.5% through 2030, reaching $844.0 billion in 2030.

Over the past five years, the US oil pipeline transportation industry has contracted, shaped by shifting production trends, challenging economic conditions and an evolving energy landscape. The remarkable rise of domestic oil production, enabled by fracking and drilling technology advancements, initially drove strong demand for pipeline capacity. However, greater geopolitical conflict, particularly in Ukraine and the Middle East, accelerated efforts to transition toward renewable energy, posing challenges for the industry's future. Regulatory uncertainty, environmental protests and the cancellation of high-profile projects have heightened operational risks for pipeline operators. At the same time, the industry has faced mounting cost pressures from volatile input prices and increasing labor and compliance costs. Over the past five years, industry revenue is projected to dip at a CAGR of 1.7% to $15.4 billion, including a current-year decline of 1.4%. Profit remains stable at 15.1% of revenue for 2025. Market consolidation remains a central theme, with established firms leveraging strong balance sheets to acquire distressed or strategically valuable assets as smaller operators delay new projects amid tight liquidity. Despite cost containment and operational efficiency efforts, the sector continues to navigate internal and external challenges. Oil fluctuations in oil production and shifting demand patterns affect pipeline utilization rates. Higher regulatory and environmental hurdles have driven up permitting costs and slowed the pace of new builds. Meanwhile, the increasing focus on maintenance and upgrades over new construction fosters greater competition for skilled labor, pushing up industry wage costs and complicating workforce management. Digital transformation, including automation and advanced monitoring, has become vital for cost control, efficiency and regulatory compliance. The oil pipeline transportation industry is expected to continue facing subdued growth as the US energy market transitions gradually away from fossil fuels and toward renewables. Deregulation could lower compliance costs and simplify pipeline expansion and crude production, potentially boosting operator revenue. Interest rate cuts may also drive more M&A activity, further reshaping the competitive landscape. At the same time, tariffs on imported crude may raise costs, encouraging more domestic production, but also risking retaliatory tariffs that could diminish US oil export demand. Industry stakeholders are responding to these pressures by investing in advanced technologies that enhance operational security and efficiency, such as cybersecurity solutions, blockchain and cloud-based systems. Over the next five years, revenue is projected to grow marginally, at a CAGR of 0.1%, reaching $15.4 billion by 2030. Nevertheless, profit will rise to 16.1% by 2030, reflecting continued industry adaptation and resilience in a rapidly evolving operating environment.

Learn about the Permian Basin, one of the most prolific oil-producing regions in the U.S. Discover how advancements in drilling technologies have led to a boom in crude oil production. Explore the factors contributing to the increase in production, including abundant reserves, favorable geology, developed infrastructure, and low production costs. Find out how Permian Basin crude production has transformed the United States into the world's largest crude oil producer.

As per Cognitive Market Research's latest published report, the Global Oil Exploration and Production market size is $3,588.98 Million in 2024 and it is forecasted to reach $5,116.57 Billion by 2031. Oil Exploration and Production Industry's Compound Annual Growth Rate will be 5.20% from 2024 to 2031. Market Dynamics of the Oil Exploration and Production Market

Market Driver for the Oil Exploration and Production Market

The increasing investment in oil sector by several government bodies worldwide elevates the market growth 

Many countries view a stable and secure energy supply as crucial for their economic development and national security. Investing in the oil sector helps ensure a reliable source of energy. Oil exploration and production contribute significantly to the economic growth of a country. Governments often invest in the oil sector to capitalize on the potential for high returns, which can be used to fund public services, infrastructure projects, and other essential programs. Despite efforts to transition to renewable energy sources, the global demand for oil remains high. Governments recognize the need to meet this demand and ensure a stable energy supply to support industrial processes, transportation, and other key sectors. The oil and gas industry encompasses activities linked to exploration, including the search for hydrocarbons, identification of high-potential areas for oil and gas extraction, test drilling, the construction of wells, and initial extraction. According to the Center on Global Energy Policy, data 2023, the 2021–22 period of high oil and gas prices did not lead to a significant increase in capital spending by private companies despite record profits. One exception has been upstream exploration and production (E&P) companies, whose capital spending in 2022 was the highest since 2014.   According to the International Labor Organization (ILO), data 2022, the oil and gas industry makes a significant contribution to the global economy and to its growth and development worldwide. The oil industry alone accounts for almost 3 per cent of global domestic product. The trade in crude oil reached US$640 billion in 2020, making it one of the world’s most traded commodities. Additionally, the industry is highly capital-intensive. Globally investments in oil and gas supply reached more than US$511 billion in 2020. According to the oil and gas industry outlook, data 2023, rapid recovery in demand, and geopolitical developments have driven oil prices to 2014 highs and upstream cash flows to record levels. In 2022, the global upstream industry is projected to generate its highest-ever free cash flows of $1.4 trillion at an assumed average Brent oil price of $106/bbl. Until now, the industry has practiced capital discipline and focused on cash flow generation and pay-out—2022 year-to-date average O&G production is up by 4.5% over the same period last year, while 2022 free cash flows per barrel of production is projected to be higher by nearly 70% over 2021. In addition, high commodity prices and growing concerns over energy security are creating urgency for many to diversify supply and accelerate the energy transition. As a result, clean energy investment by Oil &Gas companies has risen by an average of 12% each year since 2020 and is expected to account for an estimated 5% of total Oil & Gas capex spending in 2022, up from less than 2% in 2020.Therefore, investments made over recent decades enabled the United States to become a world leader in oil and natural gas production. Thus, owing to increased oil production, the demand for oil exploration and production has surged during the past few years.

The rising demand for oil across both commercial and residential sector is expected to drive the market growth 

Oil remains a primary source of energy for transportation, including cars, trucks, ships, and airplanes. The growing global population, urbanization, and increased industrial activity contribute to a rise in the number of vehicles and the overall demand for transportation fuels derived from oil, such as gasoline and diesel. Many industrial processes rely on oil and its by-products as energy sources and raw materials. Industries such as manufacturing, petrochemicals, and construction utilize oil-based products for various applications, including heating, power generation, and the production of pl...

Saudi Arabia’s crude oil exports in 2023 had a value of ***** billion U.S. dollars. This was the highest amount made by any crude oil exporting country that year and corresponded to a **** percent share of global crude exports based on value. What is crude oil and who are the largest producers? Crude oil is unrefined petroleum that is made up of hydrocarbons as well as other organic materials. It is a fossil fuel that can be refined to create products such as transportation and heating fuels, as well as plastics, resins, solvents, and lubricants. It is a nonrenewable resource, meaning that there is a limited amount of it on Earth and it cannot be replaced naturally at the same rate as our current global consumption. Global oil production stands at nearly ** million barrels per day. Oil production in Saudi Arabia It follows that as the greatest exporter based on value, Saudi Arabia is also one of the world’s largest oil producers. As of 2023, the Middle Eastern country and OPEC member state accounted for a **** percent share of oil produced, second only to the United States. As the U.S. is also the country with the highest oil consumption worldwide, it uses more oil domestically and exports less than its competitors. The U.S. export value was roughly half that of Saudi Arabia.

There are 487 onshore oil and gas fields in California encompassing 3,392 square miles of aggregated area. The California State Water Resources Control Board (State Water Board) initiated a Regional Monitoring Program (RMP) in July 2015, intended to determine where and to what degree groundwater quality may be at potential risk to contamination related to oil and gas development activities including well stimulation, well integrity issues, produced water ponds, and underground injection. The first step in monitoring groundwater in and near oil and gas fields is to prioritize the 487 fields using consistent statewide analysis of available data that indicate potential risk of groundwater to oil and gas development. There were limited existing data on potential groundwater risk factors available for oil and gas fields across the state. During 2014-2016, the U.S. Geological Survey (USGS) extracted and compiled data from various sources, including the California Division of Oil, Gas, and Geothermal Resources (DOGGR) and the California Department of Water Resources (DWR). During 2014-2016, the depth to top of perforated intervals and depth to base of freshwater for oil and gas production wells in California were extracted from well records maintained by the DOGGR. Well records including geophysical logs, well history, well completion reports, and correspondences were viewed on DOGGR's Well Finder website at https://maps.conservation.ca.gov/doggr/wellfinder/. This digital dataset contains 3,505 records for production wells, of which 2,964 wells have a recorded depth to top of perforated intervals and 1,494 wells have a recorded depth to base of freshwater. Wells were attributed with American Petroleum Institute (API) numbers, oil and gas field, and well location, well status and type, and nearest oil and gas field for wells that plotted outside field boundaries using the DOGGR All Wells geospatial data included in this data release. Wells were attributed with land surface elevations using the California National Elevation Dataset. Due to limited time and resources to analyze well records for the most recent well configuration, wells spatially distributed throughout the state and accounting for about 2 percent of the more than 185,000 production wells (new, active, idle, or plugged well status) were attributed with depth data.