U.S. crude oil output fell in December, marking the second consecutive monthly decline and taking production to its lowest point since June of the prior year, the Energy Information Administration reported. Crude production averaged 13.66 million barrels per day (bpd) in December, a decrease of about 133,000 bpd from November.
The drop in December represented the largest month-on-month fall in U.S. oil output since January 2025, when severe weather forced shut-ins at major production centers. The EIA release underscored that the United States remains both the world’s top oil producer and its largest consumer, and noted analysts had been anticipating a slowdown in output as oil prices have softened over recent years.
U.S. West Texas Intermediate futures traded near $67 on Friday, compared with roughly $77.50 at the same point in 2024, reflecting the weaker price environment referenced by analysts in the report.
On the demand side, total U.S. petroleum consumption rose by 624,000 bpd in December to reach 20.85 million bpd, the highest monthly level since August. Gasoline demand increased by 101,000 bpd to 8.78 million bpd, while demand for distillate fuels - which include diesel and heating oil - rose by 16,000 bpd to 3.81 million bpd, the EIA data showed.
Natural gas output also featured prominently in the EIA release. Gross natural gas production from the Lower 48 states climbed to a record 135.9 billion cubic feet per day (bcfd) in December, up from the previous all-time high of 134.2 bcfd recorded in November.
The report broke out top producing states as well. Texas saw monthly gas output rise by 1 percent to a record 38.5 bcfd in December, up from 38.2 bcfd in November. Pennsylvania’s monthly production increased by 2 percent to 21.5 bcfd in December; Pennsylvania’s prior record high was 21.9 bcfd in December 2021, the EIA said.
The juxtaposition of falling crude production and rising petroleum demand, together with record natural gas output, highlights divergent trends within U.S. hydrocarbon markets in December. The EIA data illustrated both the sensitivity of oil output to price and weather-related disruptions and the continued expansion of gas production in key producing states.
Data points cited:
- U.S. crude oil production: 13.66 million bpd in December (-133,000 bpd vs November)
- Total U.S. petroleum demand: 20.85 million bpd in December (+624,000 bpd)
- Gasoline demand: 8.78 million bpd in December (+101,000 bpd)
- Distillate fuels demand: 3.81 million bpd in December (+16,000 bpd)
- Lower 48 natural gas production: 135.9 bcfd in December (record high)
- Texas natural gas output: 38.5 bcfd in December (record monthly high)
- Pennsylvania natural gas output: 21.5 bcfd in December (+2 percent)