The Permian basin is by far the most productive oil basin in the United States. Monthly production in the Permian peaked at nearly six million barrels per day in July 2023. This basin is also known as West Texas Basin, located in western Texas and southeastern New Mexico. Total daily production output in the U.S. climbed to over eight million barrels by late 2021.
The Bakken basin recorded the highest monthly new-well oil production per rig in May, at 1,755.5 barrels per day. The Permian basin, which is the largest oil producing region overall, had a new-well production output of 1,514 barrels per day per rig.
According to a 2025 survey, oil producers operating in the Permian region needed WTI oil prices to amount to a minimum of ** U.S. dollars per barrel in order to profitably drill a new well. This compared to a minimum breakeven price of ** U.S. dollars per barrel for existing wells. The monthly average WTI oil price ranged between ** and ** U.S. dollars per barrel around the time of the survey. Most productive oil basins Operators in shale basins have the lowest average breakeven prices for new wells. However, when it comes to existing wells, operators in the Permian (Delaware) basin can afford even lower oil prices. The Permian basin, located in Texas and New Mexico, accounts for the greatest U.S. oil production output of any region. In 2024, production in the Permian reached nearly *********** barrels per day - more than **** times the amount extracted from the neighboring Eagle Ford rock formation. Texas is leading oil producing state With both regions located in Texas, it is not surprising that this is also the leading crude oil producing U.S. state. Nearly two billion barrels worth of crude oil were extracted in Texas per year, far more than any other state. Texas is home to a total of five major oil and gas formations.
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The Permian Basin in West Texas and southeastern New Mexico is a crucial oil-producing region, responsible for over a third of the total U.S. crude oil production. With vast reserves and advanced extraction technologies, the area has experienced remarkable growth in oil production, making it one of the most important regions in the global oil market.
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U.S. oil producers in the Permian Basin face geological constraints limiting production growth, impacting oil output and costs. Despite challenges, the basin remains a key player in global oil production.
For more than 100 years, the Permian Basin has been an important source of oil and gas produced from conventional reservoirs; directional drilling combined with hydraulic fracturing has greatly increased production in the past 10 years to the extent that the Permian Basin is becoming one of the world’s largest continuous oil and gas (COG) producing fields (U.S. Energy Information Administration, 2020). These recent techniques extract oil and gas by directionally drilling and hydraulically fracturing the surrounding reservoir rock. The extraction of COG by using these techniques requires large volumes of water and estimates of the total water volume used in COG require a comprehensive assessment to determine the amount of water needed to extract reservoir resources. This data release contains the R scripts used to process input data (Ball and others, 2020) and the results (output data) produced by those scripts. Linear and quantile regression models of water use in relation to the number of oil and gas wells developed were fitted to the direct, indirect, and ancillary water-use categories for the Permian Basin. Confidence intervals for each parameter estimate (regression model coefficient) obtained from the linear regression models were computed as a measure of uncertainty. Together, these scripts and output data can be used to model water use associated with COG development in the Permian Basin, with estimates by individual well and by county. In March, 2022, U.S. Geological Survey staff noticed an incorrect version of a file that was not part of the Bureau approved data release was included within this data release by mistake. The data release has been updated by replacing the incorrect version of the file with the original Bureau approved version of the file. The file in question is located within the top-level "Model.zip" directory and is the "mungeDataRelease.R" script. The incorrect file had the same name as the correct file. First release: August 2021; revised April 2022 (version 2.0). The previous version can be obtained by contacting the USGS Oklahoma-Texas Water Science Center using the "Point of Contact" link on the landing page on ScienceBase.
One of the largest conventional oil reservoirs in the United States, the Permian Basin, is becoming one of the world’s largest continuous oil and gas producing reservoirs. Continuous, or horizontal well drilling techniques extract oil and gas by directionally drilling and hydraulically fracturing the surrounding reservoir rock. The continuous extraction of oil and gas using hydraulic fracturing requires large volumes of water, and estimates of the total water volume used in the Continuous Oil and Gas (COG) extraction technique, requires a comprehensive assessment to determine the amount of water needed to extract reservoir resources. This data release contains the input and output files utilized for the assessment of water usage associated with continuous oil production in the Permian Basin. All data points that met the filtering criteria as described in the child item Data Processing
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.
A cells polygon feature class was created by the U.S. Geological Survey (USGS) to illustrate the degree of exploration, type of production, and distribution of production in the United States. Each cell represents a square mile of the land surface, and the cells are coded to represent whether the wells included within the cell are predominantly oil-producing, gas-producing, both oil and gas-producing, or the type of production of the wells located within the cell is unknown or dry. The well information was initially retrieved from IHS Inc.'s PI/Dwights PLUS Well Data on CD-ROM, which is a proprietary, commercial database containing information for most oil and gas wells in the U.S. Cells were developed as a graphic solution to overcome the problem of displaying proprietary well data. No proprietary data are displayed or included in the cell maps. The data are current through 10/1/2005.
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Permian production continues to be the engine growth for US onshore hydrocarbon production. Production of crude oil and natural gas has grown each year from 2013–2018 despite the oil and gas industry going through one of the worst downturns during that period. As in other unconventional shale plays, operators in the Permian Basin continue to drill longer laterals beyond 9,000 feet and some reaching as much as 3 miles. The general objective remains to increase the productivity of the new producing wells in a higher proportion with respect to the cost increase associated with these more complex wells. The Permian has also seen a clear trend for larger scale operations of key operators that increases the surface of continuous acreage and allows for more recovery. This has also driven the M&A activity in the Permian with companies like Chevron, Diamondback Energy, and Concho Resources looking to expand their Permian footprint to drive greater efficiency and lower production cost. The limitations to gas pipeline capacity that gave rise to flaring is also expected to ease during 2019–2020, with approximately 4 billion cubic feet of pipeline capacity expected to be added during these two years, giving further lift to Permian production. Read More
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The U.S. oil and gas market, a significant contributor to the global energy landscape, is experiencing robust growth, driven by increasing energy demand and a complex interplay of factors. While precise market sizing for the USA alone is absent from the provided data, we can infer substantial value based on the global CAGR of >4.00% and North America's significant role in global oil and gas production. Assuming a similar growth trajectory, and considering the US's considerable share of the North American market, the US oil and gas market size likely exceeds several hundred billion USD in 2025. Key drivers include sustained domestic consumption, ongoing exploration and production activities in shale formations (like the Permian Basin), and government policies aimed at energy independence. Emerging trends include increased investment in renewable energy sources alongside continued fossil fuel reliance, a shift towards more sustainable extraction techniques, and technological advancements improving efficiency and reducing environmental impact. However, regulatory hurdles related to environmental protection, fluctuating global oil prices, and geopolitical instability pose significant restraints on market expansion. The upstream sector, encompassing exploration and production, plays a crucial role, while the midstream segment, focusing on transportation and storage, and the downstream segment, covering refining and marketing, are equally vital components. Major players like Shell, Chevron, ExxonMobil, and ConocoPhillips dominate the market, leveraging advanced technologies and strategic partnerships. The future of the U.S. oil and gas market suggests a continuation of moderate growth, influenced by the global energy transition. While renewable energy adoption is accelerating, the sustained demand for oil and gas in the short to medium term ensures the industry's continued importance. Strategies for sustainable growth will involve increasing efficiency, reducing carbon emissions through carbon capture and storage technologies, and adapting to a changing regulatory environment. Diversification into cleaner energy sources and leveraging advanced analytics to optimize production and supply chains will be crucial for long-term success in this dynamic market. The competitiveness within the industry, particularly amongst the large integrated oil companies, will continue to shape market dynamics, driving innovation and technological advancements. Recent developments include: March 2022: The United States' President Joe Biden agreed to a landmark energy supply deal with the European Union. Under this deal, the United States was expected to increase transatlantic gas deliveries. This deal is important to reduce dependence on Russia after the Russia-Ukraine War., January 2022: The Department of Energy announced the release of 13.4 million barrels of oil from the Strategic Petroleum Reserve. The release of the emergency oil reserves aimed to combat rising gasoline prices in the United States and the lack of oil supply worldwide.. Notable trends are: Upstream Sector Expected Witness Significant Growth.
The U.S. oil and gas industry has seen significant fluctuations in rotary rig counts over the past decade. As of 2024, there were 460 active oil rigs and 94 gas rigs operating in the country, marking a substantial decrease from the peak years of 2013-2014. The decrease noted in 2024 comes amid lower demand outlooks and continued decrease in crude benchmarks throughout the second half of the year. North America is home to the most oil rigs North America continues to dominate the global oil and gas rig market, having more than double the number of oil rigs of the Middle East. The U.S. plays a pivotal role in this market dominance. Within the U.S. the Permian Basin, primarily located in Texas, stands out as the region with the highest concentration of oil rigs, boasting 300 active units as of November 2024. This is significantly more than other prominent areas such as Eagle Ford. Most productive oil basins Despite the overall decrease in rig counts, U.S. oil production has remained robust. The country reached a production peak of nearly 19.4 million barrels per day in 2023, solidifying its position as the world's leading oil producer. The Bakken and Permian basins have demonstrated particularly high efficiency in terms of new-well oil production per rig.
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North America Shale Market size was valued at USD 81.3 Billion in 2023 and is projected to reach USD 148.3 Billion by 2031, growing at a CAGR of 7.8% from 2024 to 2031.
North America Shale Market Dynamics
The key market dynamics that are shaping the North America shale market include:
Key Market Drivers
Hydraulic Fracturing and Horizontal Drilling: Innovations in hydraulic fracturing (fracking) and horizontal drilling technologies have significantly enhanced the efficiency and productivity of shale oil and gas extraction. These revolutionary techniques have unlocked vast reserves of previously inaccessible oil and gas trapped in shale formations. The U.S. Energy Information Administration (EIA) reported that in 2022, shale plays accounted for 95% of U.S. natural gas production growth and about 75% of U.S. oil production. The Permian Basin alone produced over 5.2 million barrels per day of crude oil by the end of 2022.
(See USGS Digital Data Series DDS-69-H) A geographic information system focusing on the Upper Cretaceous Taylor and Navarro Groups was developed for the U.S. Geological Survey's (USGS) 2003 assessment of undiscovered, technically recoverable oil and natural gas resources of the Gulf Coast Region. The USGS Energy Resources Science Center has developed map and metadata services to deliver the 2003 assessment results GIS data and services online. The Gulf Coast assessment is based on geologic elements of a total petroleum system (TPS) as described in Condon and Dyman (2005). The estimates of undiscovered oil and gas resources are within assessment units (AUs). The hydrocarbon assessment units include the assessment results as attributes within the AU polygon feature class (in geodatabase and shapefile format). Quarter-mile cells of the land surface that include single or multiple wells were created by the USGS to illustrate the degree of exploration and the type and distribution of production for each assessment unit. Other data that are available in the map documents and services include the TPS and USGS province boundaries. To easily distribute the Gulf Coast maps and GIS data, a web mapping application has been developed by the USGS, and customized ArcMap (by ESRI) projects are available for download at the Energy Resources Science Center Gulf Coast website. ArcGIS Publisher (by ESRI) was used to create a published map file (pmf) from each ArcMap document (.mxd). The basemap services being used in the GC map applications are from ArcGIS Online Services (by ESRI), and include the following layers: -- Satellite imagery -- Shaded relief -- Transportation -- States -- Counties -- Cities -- National Forests With the ESRI_StreetMap_World_2D service, detailed data, such as railroads and airports, appear as the user zooms in at larger scales.
This dataset comprises a collection of tabular data and graphical images supporting the U.S. Geological Survey's National Oil and Gas Assessment (NOGA) for Powder River Basin Province (033). The dataset includes detailed information on crude oil and natural gas production, including volumetric and descriptive data such as cumulative production, remaining reserves, and known recoverable volumes. Historical data covering field-discovery dates, well completion dates, exploration objectives, and well depths are also provided. Data sources include commercial databases along with supplemental information from various federal and state agencies. No proprietary data is included in this. The dataset is presented in multiple formats, including .pdf files for graphical images and .tab files for tabular data, encompassing eco-regional, federal land, ownership parcels, and state-wise data distributions.
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The US onshore drilling fluid market is experiencing robust growth, fueled by increasing oil and gas exploration and production activities, particularly in prolific shale basins like the Permian, Eagle Ford, and Bakken. The market's expansion is driven by a rising demand for efficient and environmentally friendly drilling fluids, leading to innovations in additive types such as protective chemicals, fluid viscosifiers, and shale stabilizers. The preference for water-based drilling fluids over oil-based alternatives due to stricter environmental regulations and cost considerations further shapes the market landscape. While the overall market exhibits a Compound Annual Growth Rate (CAGR) exceeding 13%, specific segments within the market, such as synthetic-based drilling fluids, are likely to experience even faster growth due to their performance advantages and environmental benefits. This growth is further propelled by technological advancements in drilling fluid formulations that enhance drilling efficiency, reduce non-productive time, and minimize environmental impact. However, fluctuations in crude oil prices and the cyclical nature of the energy industry pose potential restraints on market growth. Major players like Baker Hughes, Schlumberger, and Newpark Resources are actively involved in research and development, aiming to maintain their market share and capitalize on emerging opportunities. The competitive landscape is characterized by a mix of large multinational corporations and smaller specialized companies. The market is segmented geographically, with the Permian and Eagle Ford basins leading in terms of drilling fluid demand. Based on the provided data and industry trends, the North American market, particularly the US, holds a significant share of the global market, driven by extensive onshore drilling activities and technological advancements in the region. Ongoing investments in exploration and production, coupled with the increasing adoption of sophisticated drilling techniques, will continue to contribute to substantial market growth throughout the forecast period (2025-2033). Further market segmentation by additive type and product type provides a granular understanding of the industry's evolving dynamics, highlighting areas of significant growth potential and specific technological advancements in the market. Analyzing this detailed segmentation is crucial for stakeholders to make informed strategic decisions and capitalize on future opportunities. Key drivers for this market are: , Low Breakeven Price and High Crude Oil Price; Increasing Demand for Longer Lateral Length; Continuous Growth in Demand from Permian Basin. Potential restraints include: , Low Breakeven Price and High Crude Oil Price; Increasing Demand for Longer Lateral Length; Continuous Growth in Demand from Permian Basin. Notable trends are: Continuous Growth in Demand from Permian Basin.
This dataset comprises a collection of tabular data and graphical images supporting the U.S. Geological Survey's National Oil and Gas Assessment (NOGA) for Raton Basin-Sierra Grande Uplift Province (041). The dataset includes detailed information on crude oil and natural gas production, including volumetric and descriptive data such as cumulative production, remaining reserves, and known recoverable volumes. Historical data covering field-discovery dates, well completion dates, exploration objectives, and well depths are also provided. Data sources include commercial databases along with supplemental information from various federal and state agencies. No proprietary data is included in this. The dataset is presented in multiple formats, including .pdf files for graphical images and .tab files for tabular data, encompassing eco-regional, federal land, ownership parcels, and state-wise data distributions.
This map service displays present and past oil and gas production in the United States, as well as the location and intensity of exploratory drilling outside producing areas.
To construct this map, digital data were used from more than 3 million wells in IHS Inc.'s PI/Dwights PLUS Well Data on CD-ROM, current through 10/1/2005. In some areas, the PI/Dwights data tend not to be complete, particularly for pre-1920 production. IHS data was supplemented with state wells databases for Indiana, Pennsylvania, Kentucky, Illinois, and Ohio, (current as of 2004 to 2006).
Because of the proprietary nature of many of these databases, the area of the United States was divided into cells one quarter-mile square and the production information of each well is aggregated in each cell. No proprietary data are displayed or included in the cell maps. The cells are coded to represent whether the wells included within the cell are predominantly oil-producing, gas-producing, both oil and gas-producing, or the type of production of the wells located within the cell is unknown or dry. The cell attributes also contain the latitude and longitude values of the center-cell coordinates.
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.
Crude oil production in the United States is expected to amount to 28.26 quadrillion British thermal units in 2025. Despite many governments intensifying searches for renewable alternatives to fossil fuel energy production, production is forecast to increase until at least 2027. One standard barrel of crude oil contains about 5.8 million British thermal units. U.S. oil production gains in the past decade Thanks to hydraulic fracturing, the United States has been able to position itself as the largest oil producer worldwide. Fracking allows them to extract oil from permeable rock formations, such as shale or tight sandstone. This type of oil is referred to as tight oil or unconventional oil. In the U.S., most shale formations are located in Texas and North Dakota. Since the rapid expansion of fracking, these states have become two of the country’s largest producers of crude oil. The largest oil producing region is the Permian basin in Texas and New Mexico. Most productive oil basins Also, as of May 2025, the Permian basin ranked as the third-largest producer basin of new-well oil, generating slightly over 1,500 barrels per day per rig. The Bakken basin was the largest new-well oil producer that month, with nearly 1,800 barrels per day per rig. New-well oil refers to initial crude oil output from recently drilled and completed wells, a key metric in the oil and gas industry used to assess early well productivity.
The Permian basin is by far the most productive oil basin in the United States. Monthly production in the Permian peaked at nearly six million barrels per day in July 2023. This basin is also known as West Texas Basin, located in western Texas and southeastern New Mexico. Total daily production output in the U.S. climbed to over eight million barrels by late 2021.