Yahoo Finance Oil and Gas Production by State: Top 15
In this article, we are going to discuss the Top 15 Oil and Gas Producing States. You can skip our detailed analysis of the global oil and gas market, the use of AI in the oil and gas industry, and oil majors going green, and go directly to Top 5 Oil and Gas Producing States.
America is the biggest oil producing country, accounting for 14.7% of the overall world crude production in 2022. Having the luxury of local production means that oil and gas are readily accessible and affordable for mass distribution. While this may not seem like it directly impacts the average oil and gas consumer, the truth is that it does in a massive way. Every year, the indigenous production of oil and gas helps save American consumers an estimated $203 billion, or $2,500 for each family of four. Moreover, the oil and gas industry also supports over 12 million American jobs, provides billions of dollars in tax revenue, and ensures energy security.
Global Oil and Gas Market:
As we mentioned in our article – 20 Countries with the Cheapest Gas Prices – the global oil and gas market was valued at $6.99 trillion in 2022, and is expected to grow to $8.67 trillion in 2027, with a CAGR of 4.4% during the forecast period. The largest region in the global oil and gas market share is Asia Pacific, with North America coming in second.
The primary factors driving the growth of the industry include the rising demand for oil and gas, growing competition in the industry, financial capital, and public scrutiny. Furthermore, the rising oil and gas exploration activities and the increase in prices globally are also anticipated to drive the industry's growth.
Artificial Intelligence in the Oil and Gas Industry:
Major players in the oil and gas industry are looking into big data analytics and AI to enhance decision making abilities and thus profits. AI will allow these companies to make better drilling and operational decisions, assist them in overcoming their challenges, and position them for long-term success.
Shell plc (NYSE:SHEL) has deployed artificial intelligence across its entire oil and gas supply chain, with over 160 active AI projects. It uses reinforcement learning in its exploration and drilling programme to reduce gas extraction costs. From machine learning to computer vision, deep learning to virtual assistants and autonomous vehicles to robotics, Shell plc (NYSE:SHEL) has been focused on a range of technologies that have supported advances in AI. In fact, the oil giant also offers an AI Residency Program, which gives data scientists and AI engineers experience with several AI projects across the company.
Shell plc (NYSE:SHEL) ranks among the Top Natural Gas Producers in the US.
Oil Majors Going Green:
As climate catastrophes continue to escalate, the urgency to reach net zero emissions is becoming more critical than ever. As a result, following the roadmap of the International Energy Agency, a growing number of oil and gas companies have committed to achieving net zero by 2050.
Among these key players is also The Exxon Mobil Corporation (NYSE:XOM) – the largest oil producer in the U.S. – which announced its goal last year to cut greenhouse gas emissions at its oil and gas operations to net zero by 2050, as it responds to investor pressure to clean up its business in the face of climate change. The oil giant said that it would eliminate the routine flaring of natural gas and methane leaks from its facilities and use renewables to power operations. Moreover, the Texas-based company is also investing $17 billion over a six-year span through 2027 in lower carbon emissions technologies such as carbon capture and sequestration, and hydrogen.
In fact, The Exxon Mobil Corporation (NYSE:XOM) has already taken significant steps to minimize its carbon footprint over the last few years, including evaluating the potential impact of its emissions to the communities where it operates. From 2016 to 2021, the total reportable emissions of volatile organic compounds, sulfur oxides, and nitrogen oxides decreased by approximately 24% at operated assets. The company also recycled nearly 100 million barrels of water in 2021, which enabled it to offset almost half of its water needs for fracking operations.
The Exxon Mobil Corporation (NYSE:XOM) ranks among the Best November Dividend Stocks to Buy.
Similarly, in 2021, the Chevron Corporation (NYSE:CVX) also set the ambitious target to cut operational emissions to net zero by 2050, and has already implemented various measures to reduce its carbon emissions, including investing in blue and green hydrogen, carbon capture and sequestration, offsets, geothermal and nuclear energy, and restoring coastal and marine habitats to ensure they continue to draw CO2 from the air. The company has pledged to invest $10 billion by 2028 to reduce its carbon footprint.
Chevron Corporation (NYSE:CVX) believes that implementing a global carbon pricing system is the key incentive for driving low-carbon investments and scaling up energy transition technologies. The idea of taxing carbon emissions through a ‘cap-and-trade’ system is widely supported in some major markets like Europe and the U.K., but remains a political controversy in others, notably the United States. Chevron’s commitment to utilizing existing and emerging energy solutions and services demonstrates its dedication to mitigating greenhouse gas emissions and contributing to a more sustainable future.
Chevron Corporation (NYSE:CVX) sits among the Best Warren Buffett Stock Picks for Beginners.
With that said, here are the Top Oil and Gas Producing States in the U.S.
An oil derrick in the North Sea, revealing the scope of the company's drilling operations.
Methodology:
To collect data for this article, we have referred to the U.S. Energy Information Administration, looking for the States that Produce the Most Oil and Gas. The following states have been ranked by the number of barrels (bbls) of crude oil they produced in 2022, and we have also mentioned the natural dry gas production figures for each state in the same year, measured in million cubic feet (mmcf).
15. Mississippi
Total Crude Oil Production in 2022: 12.667 million bbls
Total Natural Dry Gas Production in 2022: 28,492 mmcf
The Magnolia State produces about 0.3% of the nation's crude oil and holds about 0.3% of the total proved oil reserves in the U.S. It was announced in July this year that Denbury Inc. – the largest oil producer in Mississippi – has been acquired by ExxonMobil Corp for $4.9 billion. Denbury is a prime player in the emerging carbon capture and geologic storage industry and its acquisition is meant to accelerate the oil giant’s energy transition business with an established carbon dioxide sequestration operation, essentially seeking to make carbon capture a more profitable endeavor.
Mississippi ranks among the States With the Cheapest Gas Prices in the US.
14. West Virginia
Total Crude Oil Production in 2022: 15.204 million bbls
Total Natural Dry Gas Production in 2022: 2,694,681 mmcf
Among West Virginia’s resources are abundant natural gas and petroleum, with gas being more common than petroleum. Overall, the Mountain State is the fourth-largest energy producer in the United States.
According to the American Petroleum Institute, the oil and gas industry supported more than 73,000 jobs and contributed nearly $13 billion to West Virginia’s economy in 2021. West Virginia ranks among the Top Oil and Gas Producing States in 2023.
13. Montana
Total Crude Oil Production in 2022: 20.585 million bbls
Total Natural Dry Gas Production in 2022: 37,495 mmcf
Most of Montana's crude oil production comes from the Bakken Formation in the northeastern corner of the state, however, the majority of the oil produced is exported to other states. The Treasure State also has four refineries with a combined crude oil processing capacity of about 218,000 barrels per calendar day.
Due to less competition amongst the refineries and high transportation costs, Montana sits among the States With the Highest Gas Prices in the US.
12. Ohio
Total Crude Oil Production in 2022: 22.280 million bbls
Total Natural Dry Gas Production in 2022: 2,197,078 mmcf
Ohio is counted among the major oil and gas producing states in the U.S., with the Buckeye State also having given birth to companies like Standard Oil and Marathon oil in the 19th century. Commercial quantities of oil and gas have been found in 69 of Ohio's 88 counties, however, most of the current production is from the eastern third of the state.
11. Kansas
Total Crude Oil Production in 2022: 28.161 million bbls
Total Natural Dry Gas Production in 2022: 134,045 mmcf
The oil and gas industry is a major contributor to the economy of Kansas and, over the past decade, has supported 118,000 jobs and $3 billion in family income, besides contributing $1.4 billion in state and local tax revenue.
A network of pipelines delivers crude oil to the state's three refineries, which combined can process about 390,000 barrels of crude oil per day.
10. Louisiana
Total Crude Oil Production in 2022: 36.493 million bbls
Total Natural Dry Gas Production in 2022: 4,038,226 mmcf
Louisiana ranks among the Top 10 Oil and Gas Producing States in America, and the state’s 15 oil refineries account for nearly one-sixth of the nation's total refining capacity, capable of processing about 2.9 million barrels of crude oil per day.
The Pelican State accounts for about 10% of the total marketed natural gas production in the U.S. and holds about 7% of the country’s natural gas reserves.
9. Utah
Total Crude Oil Production in 2022: 45.251 million bbls
Total Natural Dry Gas Production in 2022: 249,719 mmcf
Utah produces a significant amount of crude oil, primarily from the Uintah Basin in the eastern part of the state. The Beehive State has the fourth-highest number of oil and natural gas leases on federal lands, after Wyoming, New Mexico, and Colorado. Employment in Utah’s oil and gas industry rose 16% between 2021 and 2022, adding more than a thousand workers to bring the total to 7,449.
8. Wyoming
Total Crude Oil Production in 2022: 90.906 million bbls
Total Natural Dry Gas Production in 2022: 982,114 mmcf
At its peak, Wyoming had 27,951 producing wells in 2022, including 10,120 producing oil wells and 17,800 producing gas wells. Oil and gas production, by itself, accounted for over 40% of the total property taxes levied in the Equality State last year, in addition to supporting 58,780 jobs and generating $5.7 billion in labor income.
7. California
Total Crude Oil Production in 2022: 124.727 million bbls
Total Natural Dry Gas Production in 2022: 129,305 mmcf
Although California sits among the Top Oil and Gas Producing States, it is aiming to be the biggest oil producer in the world and the first state in America to plan a managed decline of the sector. Governor Gavin Newsom has ordered a plan to phase out oil and gas production in the Golden State by 2045, and California even passed a new law last year banning oil and gas drilling within 3,200 feet of structures including homes, schools, and hospitals.
6. Oklahoma
Total Crude Oil Production in 2022: 151.537 million bbls
Total Natural Dry Gas Production in 2022: 2,507,460 mmcf
Oklahoma's oil and natural gas industry is by far the largest taxpayer in the state, and over the last decade, approximately $2.1 billion in funds have been apportioned for education – an average of more than 200 million annually. School districts in 24 counties, many rural, have received more than $1 million from industry severance taxes each year for the past decade.
Oklahoma ranks 6th in our list of Major Oil and Gas Producing States.
Click to continue reading and see the Top 5 Oil and Gas Producing States.
Suggested Articles:
Disclosure: None. Oil and Gas Production by State: Top 15 is originally published on Insider Monkey.