BAKU, Azerbaijan, November 6. U.S. crude oil and natural gas production continued to climb in 2024 despite accelerating decline rates from existing wells, according to a new report from the U.S. Energy Information Administration (EIA), Trend reports.
The agency noted that record numbers of new wells, especially horizontal wells, have offset production losses, sustaining growth in the Lower 48 states.
Between 2010 and 2024, new hydrocarbon wells in the Lower 48 (L48) consistently offset and often exceeded declines from older wells. As reservoir pressures fall over time, production naturally declines, requiring a steady stream of new wells to maintain overall output.
In December 2024, L48 crude oil production reached 11.2 million barrels per day (b/d), up from 11.0 million b/d a year earlier. Wells that began producing in 2023 or earlier saw a sharp drop of 4.3 million b/d, but that decline was balanced by more than 15,000 new wells, around 11,700 of which were horizontal, bringing in 4.4 million b/d of new output.
A similar pattern was observed in natural gas. Output from older wells fell by 27.0 billion cubic feet per day (Bcf/d) between December 2023 and December 2024, but new wells produced 28.0 Bcf/d, pushing total L48 natural gas production up to 116.5 Bcf/d.
The EIA highlighted that horizontal wells now dominate U.S. onshore production, accounting for 94% of oil and 92% of natural gas output in December 2024. Although these wells deliver higher initial yields than vertical wells, their production declines much faster - intensifying the industry’s need to drill continuously to sustain overall volumes.
According to the EIA, this cycle of rapid decline and replacement has become a defining feature of the U.S. shale sector, underlining both its efficiency and its dependence on constant investment and drilling activity.