U.S. Petroleum Production Surges

September 27, 2018 | Neil S. Capps, CAIA, FDP, Partner, Director of Client Service

U.S. crude oil production peaked in November 1970 at just over 10 million barrels per day. That record stood until this year, when U.S. production surpassed its previous high, and with OPEC’s recent decision to keep production constant, there are perhaps more opportunities for additional U.S. production to fill in the demand gap. As a matter of background, petroleum is the sum of crude oil (used for gasoline, jet fuel, diesel, and heavy applications such as asphalt and tar) and hydrocarbon liquids (most common examples are natural gas, propane, and butane).

Natural gas drilling has increased substantially since the passing of the Energy Policy Act (“EPAct”) of 2005 and has been a significant driver of the increase in petroleum production and exports. Furthermore, this legislation loosened regulation and put incentives in place to drive growth in crude oil and natural gas production in the United States, with the goals of reducing reliance on foreign sources and providing a buffer against high energy costs. This has driven 7.4% and 5.7% annualized growth of U.S. natural gas and crude oil production over the past 13 years, respectively. Historically crude oil production has driven overall petroleum output for the United States, but since the EPAct of 2005, natural gas has had a significant influence on the domestic energy markets. Natural gas’ share of the overall U.S. petroleum output has risen from 15.4% in January 1973 to 28.9% in June 2018.

Overall U.S. petroleum production has increased by roughly 8,000 barrels per day since the passing of the EPAct of 2005, resulting in a 519.6% increase in U.S. petroleum exports, and a 23.1% decrease in U.S. petroleum imports over the same period. With Brent Crude oil exceeding $80 per barrel in September, the active count of U.S. rigs is likely to increase as greater profit opportunities return to the petroleum market.

Print PDF

The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.

Neil S. Capps, CAIA, FDP
Partner, Director of Client Service

Get to Know Neil

The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.

Related Content

Dual-axis line chart comparing LBO/M&A/Recapitalization Activity, its average level, and the SOFR (90-Day) rate from 3Q18 through 2Q26. LBO/M&A/Recapitalization Activity ranges from approximately $0 billion to $100 billion, while SOFR ranges from 0% to approximately 5%. For full dataset, please contact marquettemarketing@marquetteassociates.com.

09.21.2026

Let’s Make a Deal

For much of the past several years, the conventional view has been that higher interest rates and stretched valuations would…

Line chart comparing annualized return and annualized risk for stock-bond portfolio combinations from 1976-2019 and 2020-2026. Two lines show the range of return and risk outcomes across portfolio allocations during each period. For full dataset, please contact marquettemarketing@marquetteassociates.com.

09.14.2026

No More Free Lunch?

There are many great things about working at Marquette Associates, but “Free Lunch Tuesday” is right at the top of…

Combination stacked column and line chart comparing EMD fund flows (columns) and index cumulative returns (lines), June 2024 to present. Indices used: JPM EMBI GD Index and JPM GBI EM GD Index. Since May 2025, Monthly Flows have been positive, with the exception of March 2026. Most recent datapoint: July 31, 2026 Hard Currency Flows $1.2B, Local Currency $1.6B, JPM EMBI GD Index at 21.2%, JPM GBI EM GD Index at 23.1%. For full dataset, please contact marquettemarketing@marquetteassociates.com.

09.08.2026

EMD’s Second Chance?

Over the last several years, emerging market debt (EMD) has faced several headwinds, with rising yields across other fixed income…

Combination stacked column and line chart showing U.S. Buyout (private equity) Net Asset Value holding periods, 2011 to 2025. Column categories include holding periods

08.31.2026

Zombie, Inc.

Private equity has always had a few portfolio companies that refused to leave the party. Today, however, the industry appears…

Five-line chart comparing yield on 30-year debt instrument for the United States, United Kingdon, France, Germany, and Japan, December 2021 to August 21, 2026. First data point in order listed previously: 1.9%, 1.1%, 0.9%, 0.2%, 0.7%. Most recent: 5.3%, 5.8%, 4.9%, 3.8%, 4.1%. For full dataset, please contact marquettemarketing@marquetteassociates.com.

08.24.2026

Long Weakened

The global bond market is facing renewed pressure as investors demand higher yields to hold long-dated government debt, pushing borrowing…

Column chart showing total deal size for 14 non-financial corporate bond deals of $20B or more since the start of 2025. Out of 14, only three were unrelated to AI or hyperscalers. For full dataset, please contact marquettemarketing@marquetteassociates.com.

08.17.2026

Supersize Me!

As a college football player struggling to put on mass, the “supersizing” deal at McDonald’s was hard to beat. For…

More articles

Subscribe to Research Email Alerts

Research Email Alert Subscription

Research alerts keep you updated on our latest research publications. Simply enter your contact information, choose the research alerts you would like to receive and click Subscribe. Alerts will be sent as research is published.

We respect your privacy. We will never share or sell your information.

Thank You

We appreciate your interest in Marquette Associates.

If you have questions or need further information, please contact us directly and we will respond to your inquiry within 24 hours.

Contact Us >