Future Of Oil Production In The United States

The discovery of oil contributed to the tremendous growth of many countries, including the United States of America. The boom in industrialization and the quantum leap in development and global connection of many countries came with the discovery of crude oil. Gasoline has remained the principal fuel and an integral part of the United States’ economy.

With the United States also committing to the net-zero pledges, the future of the States’ oil production will be taking a new shape because of the transition in energy. In the not-so-far-away future, the forecast has shown a drop in oil production in the US due to renewable energies coming on board rapidly. However, the crude oil (gasoline) presently produces about 16% of the United States’ total energy.

It is also glaring how the pandemic has rocked the boat of the Oil industry in the United States. This also will birth new strategies in the landscapes of the Unites States oil production. This article highlights the before, now, and the future of oil production in the United States, as well as the pros and cons.

Oil In The United States Before Now

Long ago, the Native Americans had discovered oil and used it for a purpose different from what it is now. Interestingly, the then fuel was medicinal and used for different purposes, including body salve and mosquito repellants. They used the skimming process to extract the crude oil that had escaped from deep down to the earth’s surface.

Crude oil was discovered on a large scale in 1959, as George Bissell and Edwin L. Drake successfully drilled oil near Titusville, Pennsylvania. A lot of water has gone under the bridge since the drilling and production of oil in America. Since its inception, different actors and personalities have been involved in the Unites States Oil production.

Also, many persons became household names with the discovery of oil and its production. The likes of Dr. John W. Ellis and John D. Rockefeller will be remembered for their parts in the early stage of oil production. After the first discovery in Pennsylvania, crude oil was discovered in other states in the US, and today, 32 States are oil-producing.

Oil In The United States Now

The United States is the 11th on the list of Countries with the largest oil reserves worldwide. However, they became the world’s top crude oil producer in 2018 and remained on top of the table even in 2019 and 2020, respectively. According to the American Petroleum Institute, 10.3 million jobs and about 8% of the American nation’s GDP are supported by the Oil and gas industry.

Where Does The United States Oil Come From?

With the United States leading as the world’s top crude oil producer, it is essential to look at where the oil is coming from.  There are 32 States involved in the production of the United States crude oil and also the coastal waters of the US. However, about 71% of all United States crude oil production is produced by five states. Below is a table reflecting the five leading states in the United States crude oil production by percentage in 2020.


Name of State Crude oil production by percentage
Texas 43.0%
North Dakota 10.4%
New Mexico 9.2%
Oklahoma 4.1%
Colorado 4.0%


Also, the United States Crude oil comes from other countries and offshore refineries. In 2020, close to 15% of the US crude oil came from the offshore wells located in the waters of the Gulf of Mexico.

What Is The Impart Of The Covid-19 Pandemic On The US Oil Production?

The imparts of the sudden and unforeseen outbreak of the Covid-19 pandemic is seen in all industries, including the petroleum industry, which contributes enormously to the US GDP. Evidently, the lockdowns imparted negatively on oil demand. According to the US EIA, the year 2020 recorded an 8% decline in crude oil production and has remained the most significant decrease ever.

However, the analysts’ and global macro models’ forecast shows that crude oil production is expected to climb to 11.5 million barrels per day by the end of the first quarter. In 2023 according to the models, crude oil production is forecasted to be around 14 million barrels per day. Although the forecasts are short-term predictions, the industry having all hands-on desks will have brighter days ahead despite the pandemic.

Pros And Cons Of Oil Production In The United States

The discovery of fossil fuel came with many advantages, such as a boom in industries, job creation, economic growth, global connection, and more. However, it also came with its doom as global warming is on the rise, air and water contaminations are some of the defects that came along with this revolutionizing discovery. Find below some pros and cons of oil production in the US.

Pros Of Oil Production In The United States

  1. The United States is among the top countries with the largest oil reserves globally, and this product has generated lots of revenues for the US government.
  2. Oil production has brought about job creation and increased the employment rate in the country.
  3. The oil production technology is beneficial to all and is affordable.
  4. Although renewable energies are coming into the limelight and becoming more recognized, oil energy remains their foundation.
  5. Since its invention, oil production has remained reliable and consistent.

Cons Of Oil Production In The United States

  1. According to NASA, human activities such as burning fuels from oil production have contributed to the increasing climate change that has become a concern for all. Oil production countries are all guilty of this as many of them are now gearing towards greener energy production.
  2. Oil production contributes to soil and water pollution and contaminations. According to the US. Energy Information Administration, Oil spills knowingly or unknowingly contaminate water and soil and lead to devastating fires and explosions. Many major 20th century environmental issues in the United States are connected to the petroleum industry.
  3. Many fatalities are occurring to employers within the oil and gas production industry.

The Future Of Oil In The United States Of America

Although the effect of the pandemic may not be forgotten so soon, different economic sectors in the United States are navigating their way back on track. The Oil Production industry is not left out in the forward-moving race to a more fantastic future. However, the question of what the future holds still plagues so many people’s hearts looking at the aftermath of the pandemic.

There are so many things to consider when looking at the future of oil in the United States. One of which is the renewable energies such as wind and solar, which are increasing by the day. One can quickly notice huge wind turbine blades dotting the highway as you drive by.

Future Of Oil Production And Climate Change

The future of Oil production in the United States cannot be discussed without mentioning its imparts on the climate. Climate and environmental issues have been linked to the oil production industry, and the whole world’s attention is drawn to these challenges. A significant challenge is global warming which has resulted in an increase in the volume of water in the ocean.

President Biden has requested 100% clean electricity in 2035; electrical energy will no longer be connected to fuel. In 2019, 39% of the United States electricity was gotten from clean sources free of carbon. This is undoubtedly evident that 100% clean electricity is doable by 2035.

The proposed increased funding into the clean electricity course by the Biden administration is an indication of commitment. There will be a decline in the oil industry when the goal set for 2035 is met. This is like a replay of what happened to the Coal industry after the fuel top the consumption table.

Oil Energy And Renewable Energies

The transition of oil energy to renewables to reduce greenhouse gases in the atmosphere is now a global discussion. Renewable energies include wind, solar, hydropower, biomass, and nuclear. Gradually, these renewables will find their place globally as their rapid growth is creating landmarks.

Actual, the success in the oil and gas industry records can make it seem there can never be a transition. The coal industry would not have imagined how fast the oil industry replaced it. Although the transition from oil energy to renewables may not be rapid, it is definitely achievable.

The largest fuel-consuming sectors are electricity and transportation, and with electricity going 100% green by 2035, transportation will follow suit. Already, 27% of Biden’s proposed budget is geared towards producing electric vehicles, nuclear reactors, and other alternatives to using fossil fuels. With the above in place, oil energy and transportation oil (petroleum) will decline.

Final Thought

The short-term forecast of Unites States oil production is looking very bright, having navigated forward from the effect of the pandemic. However, the long-term indicates stability in production and a slow movement towards carbon-free energy consumption. This is because the climate change challenge conned to the oil industry has become a global concern. Hence, the transition to green energy will result in a decline in the future oil production of the United States.

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