Rough weather and low demand led US oil production to the biggest slump since 1949

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Crude oil production in the United States fell in 2020 for the first time in four years due to the impact of the coronavirus crisis on oil demand. It was reported by the US Energy Agency Energy Information Administration (EIA).

The average oil production in the US last year was 11.3 million barrels (from 159 liters) per day, a decrease of almost 8 percent compared to 2019 and its lowest level since 2018. This is the largest annual production contraction measured since 1949, according to the EIA.

As a result of the crisis and the sharp drop in oil prices, oil fields were shut down throughout the US. Production from shale fields in Texas fell sharply as a result. Also in the Gulf of Mexico, less oil was pumped up, also due to hurricanes.

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Nicholas de Kramer

Nicholas de Krammer, а self-taught economic analytic with heave mathematical background. Math behind the economics (and economics behind math) is the strong side of the author. Contact him at [email protected]

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