Crude and condensate. The surge in US oil production that began in 2009 continued into 2010, spurred by an improving economy and recovering prices. Crude and condensate production in the Lower 48 states rose by 3.3% in 2010, offsetting a drop in Alaskan output of over 6%. Overall, the US saw a moderate production rise of just 2.2% from under 5.4 million bpd to almost 5.5 million bpd. This is down from 2009’s record-setting 7% increase, but still significant in absolute terms. The US now produces oil at a rate not seen since 2003.
The largest share of the increase occurred in the same provinces that led the way in 2009, the traditional Permian Basin oil play in Texas and the unconventional Bakken Shale of North Dakota. The latter state, in fact, posted a staggering 27% increase to over 300,000 bpd, taking the region into uncharted territory. Texas onshore continued to improve to an average 1.35 million bpd, the great majority in the low-risk areas in the western part of the state.
Even though the Macondo blowout put the clamps on drilling in the deep Gulf of Mexico, federal Gulf waters saw crude production hold steady and even post a small increase. Offshore production was the main reason that Louisiana was able to show a 2.2% gain over 2009.
| US crude and condensate production by state |
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Other notable changes occurred in Colorado, which experienced more than a 12% decline, and Montana, which, despite having a portion of the Bakken Shale, lost 15% of its production. Oklahoma, Wyoming and New Mexico crude production remained essentially flat, while Kansas and Mississippi showed small but significant gains.
Along with Alaska, California also experienced a production decrease in 2010, though only by some 2%. If this estimate proves accurate, then despite the decline, California has passed Alaska as the third largest oil producer in the US.
Natural gas. Total US marketed natural gas production increased by 3.4% in 2010, marking a steady upward trend since the beginning of 2009, despite suppressed prices. Consumption, according to the Energy Information Administration, also increased, rising 4.8%. As a result, the gap between output and demand widened slightly, after narrowing last year. Unless prices strengthen, this differential may increase in the coming year, especially with drillers shifting emphasis to the more lucrative oil market. 
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