U.S. Tops Russia to Become the World’s Biggest Oil Producer

According to the monthly report issued by the U.S. Energy Information Administration (EIA), the U.S.’s total output for the month of August stood at record 11.346 million barrels a day compared to Russia’s 11.21 million. With these figures the U.S. now surpasses Russia to claim the title of world’s top oil producer, with the largest year-on-year output increase in U.S. history.

U.S. oil supply in August increased by 2.1 million barrels. According to the EIA, it’s the largest recorded increase in data since 1920. A 48% rally in oil prices in recent months saw the oil companies of Texas, Colorado and other states pump up their shale drilling to boost production. The U.S. Gulf of Mexico clocked record production during the month, as did New Mexico, which has benefited from massive growth in the Permian Basin.

For the U.S., the title of world’s biggest oil producer was extremely short-lived however, as Russia regained the title in September by producing 11.37 million barrels a day. With pledge to pump in more oil to offset declines in Venezuela and plug any supply shortfalls from U.S. sanctions on Iran, Russia is expected to hold the top spot for some time.

Although production has slowed a little in recent times as U.S. drillers wait for new pipelines to come up in the Permian Basin in 2019 and 2020, the industry expects the nation’s output to reach ~16.5 million barrels a day by 2030 -- even if oil is at $55 a barrel.

Perhaps as a result of the production boom, oil capped its worst month in October in more than two years, falling 1.3% in New York Wednesday to $65.31 a barrel.