US crude output hits record – EIA

US crude oil production in the Lower 48 states reached a record 11.3 million barrels per day (b/d) in November 2024, up 3 per cent year-on-year (YoY), despite a decline in the number of active rigs in major producing regions, according to US Energy Information Administration (EIA) statement on Tuesday.

The Permian Basin saw a slight drop in rig activity, from 310 rigs in November 2023 to 303 rigs in November 2024, contributing to an 18 per cent overall decrease in active rigs across the primary crude oil regions since January 2023. However, technological advancements, including AI, automated drilling, and hydraulic fracturing, have boosted productivity, particularly in the Permian region, where oil output per rig increased by 9 per cent year-on-year.

These efficiencies are lowering production costs and helping offset the reduced number of rigs. The US Energy Information Administration (EIA) forecasts production in the Lower 48 will rise by 260,000 bpd in 2025, driven by further technological improvements and the addition of pipeline capacity, such as the recent Matterhorn Express pipeline in the Permian, which will ease natural gas takeaway constraints and support higher crude output.

Attribution: Amwal Al Ghad English

Subediting: M. S. Salama