US crude oil production hit a four-month low in December, according to the latest data from the US Energy Information Administration (EIA). The agency reported that production dropped to 12.10 million barrels per day during the month, marking the lowest level since August 2022.
The EIA data revealed that crude oil production in Texas, the largest oil-producing state in the US, declined to 5.15 million barrels per day, which is the lowest level recorded since August 2022. Meanwhile, crude oil production in New Mexico increased to 1.77 million barrels per day, which is the highest level in history.
The decline in US crude oil production came amid lower crude oil prices, which have forced oil producers to cut back on their production. The OPEC+ alliance also continued to limit its crude oil production, which has helped to support oil prices. However, the rise in oil prices has led to concerns about inflation and the potential impact on the global economy.
Despite the decline in US crude oil production in December, the EIA said that it expects crude oil production to rise this year, driven by higher crude oil prices and increased demand. The agency forecasted that US crude oil production will average 12.95 million barrels per day in 2023, up from an average of 11.31 million barrels per day in 2021.
The EIA’s latest data underscores the challenges facing the US crude oil industry as it seeks to recover from the COVID-19 pandemic and navigate the shifting global energy landscape.