U.S. oil production approaches record as Permian output reaches “all-time” high

The nation’s production rose to 12.991 MMbpd, the highest since a peak of 13 MMbpd in November 2019, according to data from the Energy Information Administration. Most of the gain came from Texas, where oil drillers produced a record 5.63 MMbpd.

The output growth comes even as operators dial back activity. The number of rigs searching for oil in the U.S. has contracted by 20% since late November, with the total falling by five this week to 502, according to data released Friday by Baker Hughes Co.

The increased production from the U.S. had helped fill a void in global markets left by output cuts from Saudi Arabia and Russia in recent months, with the country routinely exporting more than 4 MMbpd. But so far it hasn’t been enough to ease crude prices as the constrained supply picture meets with rising global demand, and dwindling supplies at home may start to slow shipments abroad.