June 4, 2021
In 2020 US crude oil production dropped 8.6% to 8,500 MBbl/d down from 9,470 MBbl/d in 2019 due to lower oil prices and reduced demand. Almost 61% of US Crude oil production came from Tight Oil basins: Permian, Eagle Ford, DJ Niobrara, and Bakken. US crude oil production is expected stay flat in 2021 as producers prioritize strengthening balance sheets over increased CAPEX spend.
US crude oil production will continue to grow and reach 11,400 MBbl/d in 2029. US crude oil production will decline after 2029 due to maturity of Tight Oil basins. Permian will remain the primary US crude oil production basin until at least 2030. Permian production will reach its peak of 5,100 MBbl/d in 2029 up from 2,800 MBbl/d in 2020.
On January 27, 2021 President Joe Biden’s temporary halted drilling on federal lands, which may affect Gulf of Mexico’s production. Then, on March 25, 2021, the US Interior Department announced that it will launch its review of the federal oil and gas leasing program. It may lead to complete halt of new leases on federal land and water.