US crude output sets new record in 2025, Permian leads growth
Crude oil production in the US hit 13.6 million b/d in 2025, up 3% from the prior year, marking a new annual high, according to the US Energy Information Administration's (EIA) Short-Term Energy Outlook (STEO).
Most of the increase came from the Lower 48 (excluding the Gulf of Mexico), which contributed 11.3 million b/d—roughly 83% of total production. Alaska and the US federal offshore Gulf of Mexico supplied the remainder.
Production gains came despite a dip in drilling activity. Active rigs in the Lower 48 fell 5%, and completions slipped 1% versus 2024. Efficiency improvements kept output rising. New wells added 2.9 million b/d, while existing wells continued producing 8.3 million b/d. The slowdown reflected weaker prices, with WTI averaging $65/bbl, down from $77/bbl in 2024.
The Permian basin remained the powerhouse of US production, accounting for 48% of total output at 6.6 million b/d and driving most of the year’s growth with a 280,000 b/d gain. Dallas Fed survey data show breakeven costs of $61–62/bbl in the Permian’s Midland and Delaware basins, supporting production even at lower prices.
Elsewhere, output in the Eagle Ford and Bakken held mostly steady, each contributing about 9% of US crude. Eagle Ford edged up 18,000 b/d to 1.2 million b/d, while Bakken slipped 30,000 b/d to 1.2 million b/d.
Five Gulf of Mexico projects supported 2025 production gains, combining new floating production units and subsea tiebacks. Output increased by 111,000 b/d to average 1.9 million b/d in 2025.
The Shell plc-operated Whale development started production in January 2025. The deepwater development lies in more than 8,600 ft of water and is expected to produce about 85,000 b/d at peak. Shell's Dover project came online in April as a tieback to the Appomattox hub, contributing 15,000 b/d.
Also online in April was the Chevron-operated Ballymore project. Ballymore is a tieback to the Blind Faith platform with initial expected gross production of 75,000 b/d.
In October 2025, Beacon Offshore completed the ramp-up of the four Phase 1 development wells in Shenandoah field to its target rate of 100,000 b/d of oil (117,000 boe/d).
LLOG Exploration brought online Leon-Castile in late 2025, flowing through the 60,000 b/d Salamanca floating production unit.
About the Author
Laura Bell-Hammer
Statistics Editor
Laura Bell-Hammer is the Statistics Editor for Oil & Gas Journal, where she has led the publication’s global data coverage and analytical reporting for more than three decades. She previously served as OGJ’s Survey Editor and had contributed to Oil & Gas Financial Journal before publication ceased in 2017. Before joining OGJ, she developed her industry foundation at Vintage Petroleum in Tulsa. Laura is a graduate of Oklahoma State University with a Bachelor of Science in Business Administration.