What Are The Top Oil-Producing States In The US?

Otherwise known as petroleum, oil is one of the most essential resources in the world. It’s required for gasoline, diesel, and jet fuel production, making it no surprise that it’s a colossal part of several countries’ economies.

Despite this, the global oil market has experienced a turbulent few years since the start of the COVID-19 pandemic, with wild price fluctuations evidencing the volatility.

In spite of this uncertainty, the US remains the largest oil-producing country in the world. In 2023, it took the top spot for the sixth year in a row with an output of 21.01 million barrels. States like Texas and New Mexico drive this production, but it fluctuates alongside market prices, making the country a swing producer. America is also a big oil consumer, consuming an average of 20.5 million barrels per day in 2023.

In 2022, just five states combined accounted for around 72% of America’s total oil production. If you’re intrigued by this, be sure to read on to learn about the top five oil-producing states in America.

The Top 5 Oil-Producing States in America 

1) Texas

The Lone Star State produced a whopping 5.41 million barrels per day of oil, accounting for 42.6% of America’s total production. Production has surged in the Permian Basin, leading to a sizeable five-year increase of 29.3% in the state.

In 2023, Texas broke America’s state record for oil production, producing 1.92 billion barrels, 51 million more than the previous record. The same year, it also broke the record for natural gas production by 13%, producing 12.01 trillion cubic feet.

2) New Mexico

New Mexico is the country’s second-largest oil producer, with 1.79 million barrels daily, giving it a 14.1% share of total production. The state has also benefitted from the Permian Basin effect by an incredible 190% surge over the past five years. Two of the state’s counties in the Basin accounted for 17% of all onshore oil output in the contiguous US last year.

Because of this natural gas production in the Basin, New Mexico’s annual state government income has increased by almost 50% over the past four years. The general fund surplus from this production through June 2025 was estimated at $3.5 billion in December 2023.

3) North Dakota

The Roughrider State is America’s third-largest oil-producing state, with 1.13 million barrels per day, which has decreased by 6.9% over the past five years. However, North Dakota’s production increased by 17% in 2022-2023, accounting for 8.9% of the country’s total oil production.

North Dakota’s Bakken Shale Formation has a large shale oil reserve and is home to Tioga, the state’s oil capital, in the middle of the Bakken fields. The freezing temperatures the state experiences in winter can disrupt production, but overall, production is predicted to increase.

4) Colorado

The Centennial State produces 0.44 million barrels per day, making it America’s fourth-largest oil-producing state. Over the past five years, its share of total production has increased by 1.2%, accounting for 3.5% of total American production.

Colorado’s increase in oil production over the last decade can be attributed primarily to the increased use of horizontal drilling and hydraulic fracturing. Technological advances have also allowed fewer rigs to produce more oil, with only 16 oil and gas rigs operating in the state today compared to 32 in 2019.

5) Alaska

The Last Frontier produces 0.44 million barrels of oil daily, accounting for 3.4% of the country’s total share. Despite experiencing an 11.2% decrease in production over the past five years, it’s still the fifth-largest producer in the country. It also has the fourth-largest crude oil reserves in the country, at 3.2 billion barrels, so it will likely remain a principal producer for years to come.

Much of Alaska’s oil comes from Prudhoe Bay, North America’s largest conventional oil field. The North Slope, the northernmost county in America, contains over a dozen other producing fields. Two major new developments are being developed on the North Slope, with the $2.6 billion Pikka project estimated to contribute 80,000 barrels daily upon completion.

So, That’s A Wrap!

America remains the world’s largest oil producer and a major consumer and importer of the resource. Despite challenges from the pandemic and geopolitical tensions, the country is poised to continue as a major oil producer with new oilfields approved by the next administration.  The oil & gas industry is looking bullish in the U.S. for the foreseeable future.

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