Top 5 Oil-Producing States in the US

Oil, or petroleum, is undeniably one of the world’s most crucial resources. It fuels everything from gasoline and diesel to jet fuel, making it central to the global economy.

Despite experiencing substantial disruptions in the oil market in recent years, particularly due to the impacts of the COVID-19 pandemic, the United States has remained the world’s largest oil producer. In 2023, the U.S. topped the global rankings once again, producing 21.91 million barrels per day, holding the lead for the sixth consecutive year. States like Texas and New Mexico continue to drive this production, but the market volatility makes the country a “swing producer”—its output fluctuates with global prices. The U.S. is also a major consumer of oil, with a daily demand of 20.5 million barrels in 2023.

In 2022, a mere five states were responsible for a whopping 72% of the total U.S. oil production. Read on for a discussion of each of these 5 states…

1) Texas

Texas, sometimes considered culturally synonymous with oil production, produced an astounding 5.41 million barrels per day in 2023, representing 42.6% of the country’s total output. A significant driver behind this is the Permian Basin, where production has risen by 29.3% over the past five years.

In 2023, Texas shattered its previous oil production record by producing 1.92 billion barrels, surpassing its former record by 51 million barrels. It also set a new high for natural gas production, breaking the previous record by 13% with 12.01 trillion cubic feet produced.

2) New Mexico

New Mexico ranks second, producing 1.79 million barrels per day in 2023, giving it a 14.1% share of the total U.S. oil production. The state has benefited immensely from the Permian Basin’s boom, experiencing a 190% surge in oil output over the past five years. Two New Mexico counties within the Basin were responsible for 17% of all onshore oil production in the lower 48 states last year.

This surge in production has resulted in a substantial economic impact. In fact, the state’s revenue from oil and gas has helped boost its state government income, with the general fund surplus for the period ending in June 2025 projected at $3.5 billion.

3) North Dakota

North Dakota takes the third spot, producing 1.13 million barrels per day. While the state has seen a slight 6.9% decline in production over the past five years, it experienced a 17% increase from 2022 to 2023. This increase accounts for 8.9% of total U.S. oil production.

The Bakken Shale Formation in North Dakota holds vast reserves of shale oil, with Tioga being the state’s oil capital. The extreme winter conditions can sometimes hamper production, but forecasts show growth in the state’s output in the coming years.

4) Colorado

Colorado is the fourth-largest oil producer in the U.S., with an output of 0.44 million barrels per day. Over the past five years, its share of total U.S. oil production has grown by 1.2%, now accounting for 3.5% of national production.

Colorado’s production surge can largely be attributed to innovations in drilling technology, particularly horizontal drilling and hydraulic fracturing. These methods have allowed the state to increase output with fewer rigs, dropping from 32 rigs in 2019 to just 16 operating today.

5) Alaska

Alaska rounds out the top five oil-producing states, contributing 0.44 million barrels per day, or 3.4% of the total U.S. production. Despite an 11.2% drop in production over the past five years, Alaska remains a key player in the industry. It also holds the fourth-largest crude oil reserves in the U.S., with 3.2 billion barrels still to be tapped.

Much of Alaska’s oil comes from Prudhoe Bay, the largest conventional oil field in North America. New developments on the North Slope, such as the $2.6 billion Pikka project, are expected to add 80,000 barrels per day once completed, ensuring that Alaska will continue as a principal oil producer for years to come.

Conclusion

The U.S. remains the dominant oil producer globally, and the future of the oil and gas industry looks promising, despite the turbulence of recent years. As new oilfields and developments are being approved, it is clear that states like Texas and New Mexico will continue to play central roles in this thriving sector.