US crude production reached the second-highest level on record in July as output from Texas’s Permian Basin soared to an all-time high.
The nation’s output rose to 12.991 million barrels a day, the highest since a peak of 13 million barrels in November 2019, according to data from the Energy Information Administration. Most of the gain came from Texas, where drillers produced a record 5.63 million barrels a day.
The output growth comes even as explorers dial back activity. The number of rigs searching for oil in the US 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 US 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 million barrels a day. 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.
--With assistance from David Wethe.
(Updates with rig count in third paragraph)
