Texas Densification Drives U.S. Oil Boom, New Peaks Ahead
Texas, the undisputed champion of U.S. oil production, saw a fascinating shift in 2023: output of denser crude oil outpaced lighter varieties for the first time. This trend, driven by rising prices, improved technology, and better infrastructure, contributed significantly to the nation's overall production growth.
Key Takeaways:
Texas, producing 57% of U.S. denser crude (30.1-40° API gravity), fueled national output.
New Mexico and North Dakota mirrored Texas' trend, albeit with smaller volumes.
Higher prices, improved drilling, and enhanced infrastructure spurred denser crude production.
U.S. crude oil production expected to reach record highs in 2024 and 2025 (13.4 million bpd in 2025).
While growth continues, slower pace anticipated due to declining drilling activity.