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Released October 02, 2025 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--U.S. crude oil production set a record in July at 13.64 million barrels per day (BBL/d), but it may be indicative of a short-term plateau, federal data show.
The Energy Information Administration (EIA), the statistical arm of the U.S. Department of Energy, showed total U.S. crude oil production in July was up some 110,000 BBL/d from June.
Aside from besting the previous record in June, federal data showed that total crude oil production was up 3.3% year-over-year. Among the major inland shale-producing states, New Mexico notched a 13.8% increase in production, drawing on the Permian Basin.
In Texas, home to the Eagle Ford Basin and the majority of the Permian, production increased only 1.8% year-over-year, but the 5.8 million BBL/d from July accounted for 42% of total U.S. crude oil production.
Production off the U.S. Gulf Coast, meanwhile, was up 4.6% year-over-year to reach 1.9 million BBL/d by July. Offshore basins are considered low-carbon relative to inland shale, and typically yields more frequent discoveries and production opportunities.
During the EIA's reporting period, BP plc (London, England) and Chevron Corporation (Houston, Texas) announced an oil discovery at the Far South prospect in the Gulf of Mexico in April, but only said that data point to a commercial volume of hydrocarbons.
Also in April, Chevron and TotalEnergies (Courbevoie, France) announced the start of production at the Ballymore Field, located offshore about 160 miles southeast of New Orleans. Peak production was pegged at 75,000 BBL/d, with products delivered to Chevron's nearby Blind Faith floating production unit. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Plant Database can click here for the Ballymore plant profile and click here for the Blind Faith profile.
Despite the record set in July for total U.S. crude oil production, offshore may be the only source of meaningful growth. Economists at the Organization of the Petroleum Exporting Countries (OPEC) wrote in their monthly market report for September that shale activity was somewhat suppressed.
OPEC economists added that any substantial month-over-month increase in U.S. crude oil production would come from the Gulf of Mexico. Offshore production increased 67,000 BBL/d, higher than year-ago levels to clock in at about 1.9 million BBL/d. Based on OPEC data, U.S. offshore production reached its highest level since November 2023, and more is expected as new projects come onstream.
By next year, the U.S. government is expecting a decline in production, with net production falling from 13.4 million BBL/d for the expected 2025 average to 13.3 million BBL/d by next year. All of that decline comes from onshore.
Despite vocal and political support for fossil fuels from President Donald Trump's administration, the sector is facing substantial headwinds due in part to his trade policies and hyper-partisanship. A federal shutdown on Wednesday saw U.S. crude oil prices fall about 1% in early-morning trading to hit $61 per barrel.
By next year, the federal government expects U.S. crude oil prices to average about $48 per barrel, well below the point at which many drillers can make a profit. The mood in the domestic energy sector, meanwhile, is sour.
A recent survey from the Federal Reserve Bank of Dallas found that nearly 80% of the executives responded by saying they've delayed investment decisions because of uncertainty about the price of oil, and whether those prices support additional drilling.
"The uncertainty from the administration's policies has put a damper on all investment in the oilpatch," one respondent said. "Those who can are running for the exits."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The Energy Information Administration (EIA), the statistical arm of the U.S. Department of Energy, showed total U.S. crude oil production in July was up some 110,000 BBL/d from June.
Aside from besting the previous record in June, federal data showed that total crude oil production was up 3.3% year-over-year. Among the major inland shale-producing states, New Mexico notched a 13.8% increase in production, drawing on the Permian Basin.
In Texas, home to the Eagle Ford Basin and the majority of the Permian, production increased only 1.8% year-over-year, but the 5.8 million BBL/d from July accounted for 42% of total U.S. crude oil production.
Production off the U.S. Gulf Coast, meanwhile, was up 4.6% year-over-year to reach 1.9 million BBL/d by July. Offshore basins are considered low-carbon relative to inland shale, and typically yields more frequent discoveries and production opportunities.
During the EIA's reporting period, BP plc (London, England) and Chevron Corporation (Houston, Texas) announced an oil discovery at the Far South prospect in the Gulf of Mexico in April, but only said that data point to a commercial volume of hydrocarbons.
Also in April, Chevron and TotalEnergies (Courbevoie, France) announced the start of production at the Ballymore Field, located offshore about 160 miles southeast of New Orleans. Peak production was pegged at 75,000 BBL/d, with products delivered to Chevron's nearby Blind Faith floating production unit. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Plant Database can click here for the Ballymore plant profile and click here for the Blind Faith profile.
Despite the record set in July for total U.S. crude oil production, offshore may be the only source of meaningful growth. Economists at the Organization of the Petroleum Exporting Countries (OPEC) wrote in their monthly market report for September that shale activity was somewhat suppressed.
OPEC economists added that any substantial month-over-month increase in U.S. crude oil production would come from the Gulf of Mexico. Offshore production increased 67,000 BBL/d, higher than year-ago levels to clock in at about 1.9 million BBL/d. Based on OPEC data, U.S. offshore production reached its highest level since November 2023, and more is expected as new projects come onstream.
By next year, the U.S. government is expecting a decline in production, with net production falling from 13.4 million BBL/d for the expected 2025 average to 13.3 million BBL/d by next year. All of that decline comes from onshore.
Despite vocal and political support for fossil fuels from President Donald Trump's administration, the sector is facing substantial headwinds due in part to his trade policies and hyper-partisanship. A federal shutdown on Wednesday saw U.S. crude oil prices fall about 1% in early-morning trading to hit $61 per barrel.
By next year, the federal government expects U.S. crude oil prices to average about $48 per barrel, well below the point at which many drillers can make a profit. The mood in the domestic energy sector, meanwhile, is sour.
A recent survey from the Federal Reserve Bank of Dallas found that nearly 80% of the executives responded by saying they've delayed investment decisions because of uncertainty about the price of oil, and whether those prices support additional drilling.
"The uncertainty from the administration's policies has put a damper on all investment in the oilpatch," one respondent said. "Those who can are running for the exits."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
