EIA data show that US oil and gas production reached a new record high in August.

The Energy Information Administration reported on Friday that U.S. gas and oil production reached record levels in August despite fears of a market surplus. The record U.S. production of oil has been a major factor in the slumping commodity prices that we have seen this year. Brent crude, the global benchmark, traded just above $65, or 14% less than it did at the same time last. This is partly why the OPEC+ has decided to reverse years of severe supply cuts in order to regain market share.

The EIA data revealed that the U.S. crude output increased by 86,000 barrels a day, to a new record of 13.8 million barrels per daily. EIA data shows that the previous record was set in July. The EIA estimates this production to be around 13.7 million barrels per day, up from last month's report which put it at 13.6.

New Mexico's oil output, which is the state with the second largest production, reached a record of 2.3 million barrels per day (bpd), while the offshore federal gulf region saw its output rise to 1,98 million barrels per day, the highest level since February 2020.

The future growth of U.S. crude oil production is expected to be

Concentrated

As the top onshore oil fields of the country mature, they are being drilled in the offshore Gulf region.

The U.S. Gross Natural Gas Production from the Lower 48 States also reached a record of 122.8 billion cubic foot per day (bcfd), up from an all-time high 122.1 bcfd set in July.

The EIA reported that in the top-producing gas states, monthly production in August increased by 1.2%, reaching a record of 38.0 bcfd, in Texas. However, it fell by 0.7%, to 20.9bcfd, in Pennsylvania.

This compares to previous monthly all-time records of 37.5 billion cubic feet per day in Texas in July and 21.9 billion cubic feet per day in Pennsylvania in December 2021. Reporting by Shariq KHan and Scott DiSavino, New York. Editing by Richard Chang

(source: Reuters)