In August, oil production in the United States rose to its highest level of output since the start of the COVID-19 pandemic, according to the U.S. Energy Information Administration (EIA).
Among regions that produced more than 1 million bpd of oil, the Federal Offshore Gulf of Mexico area saw the highest output increase at 15.1 percent, followed closely by New Mexico with a 14.7 percent rise. Texas output rose by 4.8 percent while production in North Dakota declined by 3.5 percent.
U.S. oil production had peaked in November 2019 when output was at 13 million bpd. Since then, it has remained low due to the rising cost of labor and equipment, as well as rigs being shut down.
Despite America’s oil output having increased by 6.2 percent in the 12 months leading up to August 2022, gasoline prices have not fallen. Instead, retail prices rose from an average of $3.24 per gallon to $3.94 during this period, a rise of over 21 percent.
Draining US Reserves
While U.S. oil production is rising, America’s Strategic Petroleum Reserve (SPR) has hit a record low under the Biden administration. As of Oct. 21, the SPR had fallen to 402 million barrels, which is only 20 days’ worth of supply for the United States and is the lowest level since 1984.The SPR decline is due to President Joe Biden’s decision to release 180 million barrels of crude oil from the reserves in an attempt to stabilize energy prices. Republicans insist that the SPR drawdown is part of the Democratic Party’s political tactics ahead of the Nov. 8 midterm elections.
“He drained a third of our strategic reserves because he wants to win an election. And that’s not what the strategic reserves are supposed to be used for,” he said. “They’re used for war and in times when we couldn’t get enough oil because of the war. That’s what the strategic reserve is used for.”