U.S. Now Largest Global Crude Oil Producer; Strong Energy Starts in Louisiana

Last week, the U.S. Energy Information Administration (EIA) reported the United States is now the largest global crude oil producer, surpassing Russia and Saudi Arabia. Louisiana has continued to play an important contributing role to the oil boom, as one of the top ten producing states. According to the EIA, the state’s 18 oil refineries account for nearly one-fifth of the nation’s refining capacity, and are capable of processing more than 3.3 million barrels of crude oil per day. In addition, the state’s deep-water port can accommodate the largest crude oil tankers, receiving up to 2 million barrels per day.

Oil is not the only product currently experiencing record outputs. Natural gas production in the U.S. has also reached record highs, with Louisiana as the fourth highest natural gas producing state. The Advocate recently reported that production in the Haynesville Shale formation, which spans much of northwest Louisiana and now has an average of at least 50 rigs operating each month, reached its highest production point since 2012.  Haynesville joins the Appalachian and Marcellus regions as some of the country’s major natural gas producers. The article writes:

Since bottoming out in 2016, production has gradually increased on the back of rising natural gas prices, according to a new report from the Energy Information Administration. Production in June 2018 reached 6.4 billion cubic feet per day, accounting for 8.5 percent of total U.S. dry natural gas production.

The oil and gas industry continues to play a vital role in Louisiana’s economy. From strong job growth to much-needed tax revenue for schools and municipalities, the industry brings great benefits to the state. Louisianians for Energy looks forward to the state’s continued contributions to fueling our country’s energy needs.