U.S. crude oil production surges to record high in Q3 2023, EIA reports

(Bloomberg) – U.S. crude oil production surged to a record during the third quarter and is expected to climb further above 13 MMbpd as the nation increasingly plays a vital role in supplying global markets.

U.S. oil production jumped to 13.13 MMbpd last quarter and is forecast to rise to 13.16 MMbpd in the fourth quarter, according to the Energy Information Administration’s monthly Short-Term Energy Outlook released Wednesday. That’s up from a prior fourth-quarter estimate of 12.94 MMbpd.

In the last few months, Saudi Arabia and Russia have tightened markets by curbing supplies. The U.S. has routinely shipped about 4 MMbpd to overseas markets to fill the gap from a tight physical market.

The latest outlook comes as Exxon Mobil Corp. has agreed to buy Pioneer Natural Resources Co to create a Permian production giant.

Moving forward, the STEO will include a separate forecast for OPEC+ crude oil production. Currently, the U.S. expects OPEC+ members will decrease their oil output by 0.3 MMbpd in 2024 compared with this year.

Meanwhile, U.S. gasoline consumption for 2023 was revised slightly lower to 8.84 MMbpd, though still above last year. Total domestic oil demand also saw a modest downward revision to 20.07 MMbpd, while world consumption remains little changed at 100.92 MMbpd.