U.S. Onshore Oil Production Reaches Record 1.7 Million BPD

U.S. crude oil production from onshore federal lands has reached a record high of 1.7 million barrels per day (bpd) in 2024, according to the Energy Information Administration (EIA) and the U.S. Department of the Interior. This figure represents a dramatic sixfold increase since 2008, significantly outpacing the overall national crude output, which has nearly tripled to 13.2 million bpd over the same period. The surge in production is largely attributed to increased activity in New Mexico’s segment of the Permian Basin, where leasing, permitting, and drilling have escalated in recent years.

New Mexico has emerged as the focal point of the federal onshore oil boom, accounting for the majority of federal land drilling permits approved and new well bores initiated from fiscal year 2020 through 2023. The state’s geological advantages, coupled with favorable permitting conditions and existing infrastructure, have positioned it as a leader in federal onshore oil production.

Comparison with Offshore Production

In contrast, federal offshore oil production has not kept pace with its onshore counterpart. While output from the Gulf of Mexico saw a slight increase, it remained at 1.8 million bpd in 2024, only marginally ahead of onshore levels and reflecting a slower growth trajectory.

Natural gas production presents a slightly different narrative. Onshore federal lands produced 4.2 trillion cubic feet (Tcf) of natural gas in 2024, up from 3.2 Tcf in 2020. This growth aligns closely with national gas production, which rose from 33.8 Tcf to 37.8 Tcf during the same timeframe. The share of U.S. natural gas sourced from onshore federal lands also increased modestly from 9.6% to 11%, marking a significant turnaround from a previous long-term decline.

In stark contrast, federal offshore gas production has declined sharply, plummeting to just 0.8 Tcf in 2024, representing less than one-third of its level in 2005. This shift indicates that the new growth frontier for oil and gas production is firmly established on land, particularly in regions like New Mexico, rather than beneath the ocean.

The ongoing developments in U.S. onshore oil production underscore a significant transformation in the energy landscape, driven primarily by regional advancements and changing market dynamics. As production continues to rise, it will be crucial to monitor the implications for energy policy and market stability across the country.