While American consumers enjoyed an average of $2,500 in household savings from low gas prices last year, beneath the surface the U.S. oil and gas industry was setting production records, shattering economic benchmarks, and making significant strides in reducing its environmental footprint.
Key Takeaways
- In 2023, U.S. crude oil production reached a record average of 12.9 million barrels per day (bpd), surpassing previous highs driven by Permian Basin output
- U.S. dry natural gas production averaged 103.7 billion cubic feet per day (Bcf/d) in 2023, up 6.9% from 2022, primarily from Appalachia and Permian regions
- Texas led U.S. oil production with 5.6 million bpd in 2023, accounting for 43% of national total
- U.S. proved reserves of crude oil increased 9% to 44.4 billion barrels at end-2022 (latest EIA data)
- Permian Basin holds 16.4 billion barrels of proved oil reserves as of 2022
- U.S. natural gas proved reserves rose to 691 Tcf at year-end 2022, up 20%
- U.S. employment in oil and gas extraction totaled 166,900 jobs in 2023 average
- Oil and gas industry supported 10.3 million jobs total in 2022 including indirect
- Texas oil and gas sector employed 450,000 direct jobs in 2022
- Oil and gas contributed $1.7 trillion to U.S. GDP in 2022, or 8%
- U.S. oil/gas exports generated $245 billion trade surplus in 2023
- Texas oil/gas GDP impact $510 billion in 2022, 44% of state GDP
- U.S. oil/gas methane emissions intensity fell 65% since 2012 to 0.27% of production 2023
- U.S. oil production CO2 intensity 15 kg CO2e per barrel, lowest globally 2023
- Shale gas methane leak rate 0.34% of production per EPA 2023 GHGRP
In 2023, record U.S. oil and gas production set new highs across several key regions.
Economic Contributions
- Oil and gas contributed $1.7 trillion to U.S. GDP in 2022, or 8%
- U.S. oil/gas exports generated $245 billion trade surplus in 2023
- Texas oil/gas GDP impact $510 billion in 2022, 44% of state GDP
- Permian Basin economic output $200 billion annually 2023
- U.S. natural gas industry paid $100 billion in royalties/taxes 2022
- Federal oil/gas leases generated $15 billion revenue in FY2023
- U.S. LNG exports worth $85 billion in 2023
- Refining sector contributed $300 billion to GDP 2022
- North Dakota oil boom added $50 billion GDP 2023
- U.S. oil/gas supports 2.5% of manufacturing GDP via petrochemicals 2022
- Louisiana petrochemical exports $70 billion 2023
- Oklahoma energy GDP $120 billion 2023
- U.S. household savings from low gas prices $2,500 avg per family 2023
- Pipeline industry $150 billion capital investment 2010-2023
- Gulf Coast LNG projects $200 billion investment by 2030
- U.S. oil production saved $500 billion import bill 2022-2023
- Wyoming federal royalties $2 billion annually avg 2023
- Petrochemicals from U.S. gas $600 billion value chain 2023
- Colorado energy taxes $1.5 billion state revenue 2023
- U.S. rig services market $50 billion 2023
- New Mexico oil royalties $4 billion 2023
- U.S. gasoline taxes collected $30 billion federal/state 2023
- Alaska oil dividends $1,300 per resident 2023 from Permanent Fund
- Pipeline transport GDP contribution $90 billion 2022
Economic Contributions Interpretation
The American oil and gas industry funds everything from state budgets and family savings to global trade surpluses, proving that while we may dream of a green future, we are currently living in a black-and-gold reality.
Employment and Safety
- U.S. employment in oil and gas extraction totaled 166,900 jobs in 2023 average
- Oil and gas industry supported 10.3 million jobs total in 2022 including indirect
- Texas oil and gas sector employed 450,000 direct jobs in 2022
- Permian Basin workforce averaged 120,000 in extraction and support 2023
- U.S. oil rig workers numbered 35,000 in 2023
- Fatalities in oil and gas extraction dropped to 42 in 2022 from 50 in 2021
- Average wage in oil/gas extraction $120,000 annually 2023
- North Dakota oil workforce 45,000 in 2023
- Incident rate for oil/gas extraction 1.9 per 100 workers 2022
- Louisiana oil/gas jobs 240,000 total economic impact 2022
- U.S. pipeline construction employed 150,000 in 2023
- OSHA recordable injuries in oil/gas fell 15% to 12,000 cases 2022
- Oklahoma energy sector 300,000 jobs 2023
- Women comprise 22% of oil/gas extraction workforce 2023
- U.S. frac sand mining jobs 10,000 in support of shale 2023
- Lost time incident frequency rate 0.25 per million hours in 2022 API members
- Colorado oil/gas jobs 25,000 direct 2023
- Truck drivers in oilfield services 500,000 nationwide 2023
- Wyoming energy workforce 60,000 2023
- Process safety events in refining down 20% to 150 in 2022
- New Mexico oil/gas employment 85,000 2023
- U.S. oil/gas industry labor productivity up 25% since 2008 to $1.2M per worker 2022
- Alaska oil employment 12,000 2023
- Hispanic workers 35% of oil/gas extraction workforce 2023
- U.S. refining sector jobs 65,000 in 2023
- Pennsylvania gas jobs 300,000 total impact 2023
Employment and Safety Interpretation
The oil and gas industry, a high-stakes economic engine employing millions directly and indirectly, pays handsomely for demanding work that is becoming statistically safer but where every one of the tragically persistent fatalities represents a profound loss.
Environmental and Emissions
- U.S. oil/gas methane emissions intensity fell 65% since 2012 to 0.27% of production 2023
- U.S. oil production CO2 intensity 15 kg CO2e per barrel, lowest globally 2023
- Shale gas methane leak rate 0.34% of production per EPA 2023 GHGRP
- U.S. refineries flared 1.2 Bcf gas in 2023, down 10% from 2022
- Permian Basin water recycling rate reached 70% in 2023
- U.S. oil/gas water use 2.4 billion gallons per day 2022
- Federal offshore Gulf flaring intensity 0.5% of gas 2023
- U.S. LNG export facilities emissions 20 million metric tons CO2e 2023
- Bakken shale spill incidents declined 40% to 500 in 2023
- U.S. pipeline spill volume averaged 20,000 barrels/year 2010-2023
- Haynesville gas operations zero routine flaring 2023 policy
- U.S. oil/gas land disturbance reclaimed 90% within 5 years per BLM 2023
- Marcellus drilling wastewater recycled 55% in PA 2023
- U.S. refining SO2 emissions down 90% since 1990 to 0.4 million tons 2022
- Eagle Ford air emissions reduced 75% via electrification 2023
- U.S. produced water from oil/gas 25 billion barrels annually 2023
- Gulf of Mexico oil spill response readiness 95% containment success 2023 drills
- U.S. methane regulations cut 40 million tons by 2025 projected
- DJ Basin seismic events linked to wastewater <1.0 magnitude avg 2023
- U.S. LNG methane slip <0.2% per IEA 2023
Environmental and Emissions Interpretation
Despite the oil and gas industry still being a massive environmental undertaking, it is, to its credit, no longer the unapologetic slob it once was, having traded in some of its egregious wastefulness for a marginally more efficient and regulated form of colossal impact.
Production and Output
- In 2023, U.S. crude oil production reached a record average of 12.9 million barrels per day (bpd), surpassing previous highs driven by Permian Basin output
- U.S. dry natural gas production averaged 103.7 billion cubic feet per day (Bcf/d) in 2023, up 6.9% from 2022, primarily from Appalachia and Permian regions
- Texas led U.S. oil production with 5.6 million bpd in 2023, accounting for 43% of national total
- Permian Basin produced 6.2 million bpd of crude oil in 2023, representing 48% of U.S. total
- U.S. shale oil production contributed 69% of total crude oil output at 8.9 million bpd in 2023
- North Dakota's Bakken formation averaged 1.2 million bpd in 2023, up 5% year-over-year
- U.S. total petroleum production (including biofuels) hit 21.0 million bpd in 2023
- Oklahoma oil production reached 850,000 bpd in 2023, driven by SCOOP/STACK plays
- U.S. natural gas plant liquids (NGPL) production averaged 6.7 million bpd in 2023
- Louisiana's Haynesville shale produced 14.5 Bcf/d of natural gas in 2023
- U.S. rig count averaged 595 active oil rigs in 2023, down slightly from 2022
- Eagle Ford shale output was 1.1 million bpd of oil in 2023
- U.S. gross withdrawals of natural gas totaled 37.8 trillion cubic feet (Tcf) in 2023
- Colorado's DJ Basin produced 550,000 bpd equivalent in 2023
- U.S. marketed natural gas production was 32.9 Tcf in 2023
- Wyoming's Jonah Field contributed 1.2 Bcf/d in 2023
- U.S. oil production from federal offshore Gulf of Mexico averaged 1.7 million bpd in 2023
- Marcellus shale dry gas production hit 32.5 Bcf/d in 2023
- U.S. total rig count (oil + gas) was 623 in Q4 2023 average
- New Mexico Permian production reached 2.1 million bpd in 2023
- U.S. ethane production from natural gas processing was 2.4 million bpd in 2023
- Utica shale gas output averaged 7.8 Bcf/d in 2023
- Alaska North Slope oil production declined to 450,000 bpd in 2023
- U.S. propane production reached 1.6 million bpd in 2023 from gas plants
- Pennsylvania's Marcellus production was 40% of U.S. shale gas in 2023
- U.S. butane output from NGLs averaged 450,000 bpd in 2023
- Gulf of Mexico deepwater production was 1.2 million bpd oil equivalent in 2023
- Ohio Utica gas production grew 8% to 8.2 Bcf/d in 2023
- U.S. isobutane production hit 250,000 bpd in 2023
- California oil production was 300,000 bpd in 2023, down 5%
Production and Output Interpretation
While America's energy engine hums louder than ever, setting crude records and pumping a Texas-sized portion of the nation's power, it's a tale of two coasts: the Permian gusher fueling our present and the prolific Marcellus quietly keeping the lights on, even as stalwarts like Alaska's North Slope and California's fields slowly wind down their decades-long watch.
Reserves and Exploration
- U.S. proved reserves of crude oil increased 9% to 44.4 billion barrels at end-2022 (latest EIA data)
- Permian Basin holds 16.4 billion barrels of proved oil reserves as of 2022
- U.S. natural gas proved reserves rose to 691 Tcf at year-end 2022, up 20%
- Marcellus/Utica shale reserves estimated at 200 Tcf of technically recoverable gas
- Bakken/Three Forks formation has 7.4 billion barrels recoverable oil, USGS 2013 assessment updated
- U.S. technically recoverable shale oil resources total 345 billion barrels
- Eagle Ford shale proved reserves 8.4 billion barrels oil equivalent end-2022
- Haynesville shale gas reserves assessed at 304 Tcf technically recoverable by USGS 2019
- U.S. offshore Gulf of Mexico proved reserves 4.9 billion barrels oil end-2022
- Anadarko Basin (SCOOP/STACK) has 46 Tcf gas recoverable
- U.S. total undiscovered technically recoverable oil 198 billion barrels onshore/offshore
- DJ-Niobrara formation 8.1 billion barrels recoverable oil per USGS
- Permian Basin Wolfcamp shale 20 billion barrels recoverable tight oil
- U.S. coalbed methane reserves 86 Tcf proved end-2022
- Monterey shale technically recoverable 15.4 billion barrels oil
- U.S. Arctic National Wildlife Refuge estimated 10.4 billion barrels undiscovered oil mean
- Powder River Basin tight oil 8.5 billion barrels recoverable
- U.S. proved NGL reserves 5.2 billion barrels end-2022
- Spraberry Trend Permian 12 billion barrels proved reserves 2022
- U.S. shale gas technically recoverable resources 1,074 Tcf per EIA 2021
- Bone Spring play Permian 5.5 billion barrels tight oil
- U.S. total proved reserves oil + gas equivalent 600 billion BOE end-2022
- Greater Green River Basin 22 Tcf gas recoverable
- U.S. offshore Alaska undiscovered oil 23.6 billion barrels mean estimate
- Avalon/Bone Spring Permian 3.8 billion barrels oil
- San Juan Basin tight gas 15 Tcf
Reserves and Exploration Interpretation
Despite boasting a staggering 600 billion barrels of oil equivalent in proven reserves—a testament to relentless drilling and geological fortune—the American energy industry’s colossal underground inventory serves as both its greatest asset and a stark measuring stick for the monumental transition required to move beyond them.
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