The United States plays a crucial role in the global oil industry, producing various types of oil across 32 of its 50 states. In 2023, the country averaged an impressive 16.6 million barrels per day, leading to a yearly total of around 711 million metric tons.
Top Oil-Producing States
When it comes to oil production, Texas stands out as the leader by a long shot. In 2023, Texas alone produced over 2 billion barrels, far surpassing New Mexico, which came in second at 667.5 million barrels. A significant factor in Texas’s oil dominance is the Permian Basin, which is known for being the most productive oil basin in the U.S. and accounts for over 50% of the nation’s onshore oil output.
North Dakota is the third-largest producer, thanks to the Bakken Shale formation, yielding over 432.7 million barrels this year. Rounding out the top five are Colorado and Oklahoma with production figures of 165.7 million and 157.2 million barrels, respectively. On the lower end, Virginia managed to produce just 5,000 barrels, making it the least productive state in terms of oil.
Types of Oil Produced in the U.S.
The U.S. produces several main types of oil, each with its unique properties:
- Crude Oil:
- Light Crude Oil: A high-quality, low-density oil that flows easily and is simple to refine, exemplified by West Texas Intermediate (WTI).
- Heavy Crude Oil: Denser and more challenging to refine due to higher sulfur content, typically found in California and Alaska.
- Sweet Crude Oil: Low in sulfur (less than 0.5%) and highly desired for producing valuable products like gasoline.
- Sour Crude Oil: Contains more than 0.5% sulfur and requires additional refining, often sourced from the Gulf of Mexico and Alaska.
- Shale Oil:
- This type is extracted from shale formations using hydraulic fracturing and horizontal drilling. Major production comes from the Permian Basin, Bakken Shale, and Eagle Ford Shale, and it tends to be light and sweet.
- Condensate:
- A very light liquid associated with natural gas production, used primarily in blending for fuels.
- Bitumen:
- A heavy oil found in oil sands, more common in Canada but also produced in some U.S. states like Utah, requiring special processing.