U.S. crude oil production hits record 13.6 million b/d

U.S. crude oil production rises despite fewer rigs

The U.S. crude oil industry reached a new milestone in 2025. According to the latest Short-Term Energy Outlook (STEO), U.S. crude oil production averaged 13.6 million barrels per day, the highest level ever recorded.

Production increased by 350,000 barrels per day (3%) compared with 2024, reinforcing the United States’ position as the world’s leading oil producer. 

For drilling contractors, service companies, and suppliers across the oilfield, especially those involved in drilling operations and mud pump systems, this trend signals something important: productivity is rising even as rig counts decline.

Lower rig counts, higher drilling efficiency

In 2025, the Lower 48 states (excluding the Gulf of America) produced 11.3 million barrels per day, representing 83% of total U.S. oil production.

However, the number of active drilling rigs fell about 5%, and the total number of wells drilled dropped slightly compared with 2024. 

The main reason was lower oil prices. The annual average for West Texas Intermediate (WTI) declined from $77 per barrel in 2024 to $65 per barrel in 2025.

Yet production still increased

The explanation lies in drilling efficiency and well productivity. Wells drilled in 2025 contributed 2.9 million barrels per day, while previously drilled wells continued producing 8.3 million barrels per day. 

Advances in drilling technology, longer laterals, and improved completion techniques allowed operators to produce more oil with fewer rigs.

For drilling crews and equipment suppliers, this means every well must perform better and last longer, especially in demanding basins where equipment reliability is critical.

The Permian Basin continues to dominate

The Permian Basin remains the engine of U.S. crude oil production.

Located in West Texas and southeastern New Mexico, the Permian accounted for 48% of total U.S. production in 2025, producing about 6.6 million barrels per day.

Most of the country’s production growth also came from this region, where output increased by 280,000 barrels per day during the year.

According to the Dallas Fed Energy Survey, executives estimate the breakeven price for drilling in the Permian at roughly $61 per barrel in the Midland Basin and $62 per barrel in the Delaware Basin. 

These costs remain low enough to support continued drilling activity even in moderate oil price environments.

U.S. Crude Oil Production Hits Record 13.6 Million b/d

Eagle Ford and Bakken remain stable

Outside the Permian, two other major shale regions continue to play a significant role in U.S. shale oil production.

The Eagle Ford shale in South Texas produced 1.2 million barrels per day, increasing slightly by 18,000 barrels per day in 2025.

Meanwhile, the Bakken formation in North Dakota and Montana also averaged about 1.2 million barrels per day, although production declined modestly by 30,000 barrels per day.

Together, these two regions account for about 18% of total U.S. crude production.

Gulf of America offshore production grows

Offshore production in the Federal Gulf of America also expanded in 2025, rising by 111,000 barrels per day to an annual average of 1.9 million barrels per day.

Five new offshore projects entered production during the year:

Whale

Ballymore

Dover

Shenandoah

Leon-Castile

Unlike shale drilling, offshore projects require years of development, meaning short-term oil price fluctuations have less immediate impact on production levels.

What this means for the drilling industry

The key takeaway for the oilfield drilling sector is clear: productivity is replacing rig growth as the main driver of U.S. crude oil production.

Operators are drilling fewer wells, but each well must deliver higher output and longer lifespans. 

That trend puts increasing pressure on drilling equipment reliability, mud pump performance, and durable oilfield components capable of handling more demanding drilling conditions.

For drilling teams working in the Permian, Eagle Ford, Bakken, or offshore Gulf, the question is no longer just how many wells are drilled—but how efficiently each one performs.