US oil and gas industry sets production records in November, led by Texas

Audio By Carbonatix

(The Center Square) – The U.S. oil and natural gas industry set oil and natural gas production records in November. 

Crude oil output reached an estimated 5.9 million barrels per day in November, the highest level ever recorded in U.S. history, according to U.S. Energy Information Agency data.

“Even with fewer rigs operating this year, productivity gains in regions like the Permian Basin and Eagle Ford Shale show the efficiency and innovation of Texas producers,” the Texas Oil & Gas Association states in a new quarterly perspective.

“Texas is America’s energy anchor,” leading in production, the perspective states. More than 42% of U.S. crude oil and nearly 30% of U.S.-marketed natural gas originates in Texas, The Center Square has reported.

Ten counties in the U.S., in Texas and New Mexico, account for 93% of domestic oil production in the last four years analyzed by the EIA, The Center Square reported. 

They are located in the Permian Basin in southeastern New Mexico and far west Texas, which produces roughly half of the crude oil and one fifth of natural gas in the country. The basin spans more than 86,000 square miles – roughly 10 times the size of New Jersey.

In the third quarter, TXOGA forecasted that “global oil demand was on track to set new records.” The fourth quarter “strengthened that outlook.”

“The EIA raised demand estimates twice this quarter, including a significant 500,000 b/d upward revision to 2024, and now expects demand to increase by nearly 1 million b/d per year through 2026,” R. Dean Foreman, Ph.D., chief economist at TXOGA, said. “This supports a central point we have made all year: a record-sized global economy requires record volumes of oil across freight, aviation, petrochemicals, and industrial use. Supply remains the key swing variable.”

In November, the EIA increased its global oil demand estimates, still expecting a record but at higher levels, also with a higher supply from the U.S. and other non-OPEC producers.

Foreman notes that EIA’s baseline assumes an increase of 2.8 million barrels per day (b/d) in global supply in 2025 and an increase of 1.3 million b/d in 2026, “driven mostly by long-lead non-OPEC projects.”

The EIA also assumes U.S. supply growth will slow to .2 million b/d in 2026, he notes, “repeating a pattern of conservative projections.”

Foreman doesn’t agree, adding, “the data suggests otherwise.”

Permian Basin rig productivity in October was up by 14.1% year over year; Eagle Ford rig productivity was up 8.7% year over year. 

Texas’ combined crude oil and natural gas production increased by 5.8% year-to-date through November despite operating with 20.4% fewer rigs year-to-date, the perspective states. 

When it comes to natural gas production, “Natural gas is entering a new era, and Texas is leading it,” Foreman says. 

U.S. liquified natural gas (LNG) exports surged this year; the U.S. is on track to surpass Russia as the world’s largest natural gas exporter, according to EIA data. Production will be enhanced by additional pipelines being built in Texas, Foreman notes. More than 20 bcf/d is underway, 25+ bcf/d has been announced to meet future LNG demand, he adds.

U.S. natural gas net exports surged 42% year over year in November, according to EIA estimates. Foreman notes that LNG projects have several strengths, including avoiding spot-market dependence via long-term procurement, rig productivity remains strong, reinforcing supply resilience, and Permian Basin associated gas is unlikely to decline sharply.

Texas remains the most reliable energy supplier in the U.S. and is on track to reach more than $220 billion in energy exports this year, TXOGA says.

“In a world seeking reliable, stable energy, Texas continues to deliver. Texas oil and natural gas producers are strengthening America’s position globally, supporting allies abroad, and ensuring affordable, dependable energy at home,��� TXOGA argues. “Continued production growth, even as the rig count declines, highlights Texas’ efficiency gains and operational discipline. In a year marked by inflation pressures, Texas energy has quietly delivered something essential: reliability and affordability for U.S. households and global consumers.”