In January, U.S. crude oil production experienced a notable decline to 12.5 million barrels per day (bpd), marking a 6% decrease from December’s record high output levels, as reported by the Energy Information Administration (EIA). The drop in production was attributed to freezing weather conditions that impacted key oil-producing regions across the country. Specifically, crude oil output in Texas, a prominent oil state, decreased to 5.4 million bpd in January, reflecting a 5% decline from the previous month.
Similarly, production in North Dakota saw a significant drop of nearly 13% to 1.1 million bpd during the same period. Severe winter storms in January disrupted oil production activities and led to the shutdown of refining capacity in Texas, while adverse weather conditions affected various other major U.S. oil-producing regions as well. The impact of the cold weather extended to motor fuel consumption, with gasoline demand, indicated by gasoline product supplied, decreasing by approximately 600,000 bpd to 8.2 million bpd, reaching its lowest level in two years according to the EIA’s monthly petroleum status report.
Additionally, gross natural gas production in the Lower 48 states also experienced a decline of about 3.6% in January, reaching a record output of 114.1 billion cubic feet per day (bcfd). Notably, Texas and Pennsylvania, key natural gas producing states, reported reductions in monthly gas output compared to the previous month, reflecting the broader impact of severe weather conditions on energy production activities across the United States.