Based on new data released today by the Department of Energy, US oil output in September increased by 25.4% from a year ago to 7.783 million barrels per day, which is the highest monthly output of crude oil in the US since May 1989, more than 24 years ago. The 25.4% increase in domestic oil production from last September was the largest percentage 12-month increase in US crude oil output in more than sixty years (with the exception of a 39.7% increase in September 2009 following a huge hurricane-related drop in September 2008, see chart above), going all the way back to a slightly higher 25.6% increase in May 1953.
If the current pace of increases in US oil output continues, it’s highly likely that domestic crude oil production will surpass 8 million bpd in October or November of this year, surpass 9 million bpd by next fall, and then reach the important 10 million bpd milestone in early 2015. At that point, US crude oil production would be at the highest level ever, matching the record high 10 million bpd production levels set in October and November 1970.
Welcome to the Great American Energy Boom, and it’s just getting started.