U.S. Crude Production Remains Steady in March, Reports EIA

• Texas crude production dropped to 5.78 million bpd (four-month low) while New Mexico held steady at 2.31 million bpd; together the states' Permian Basin accounts for roughly half of U.S. crude output
• U.S. natural gas production rose to 135.52 billion cubic feet per day in March, up from 134.63 bcfd in February, with Texas setting a new record at 38.68 bcfd
• U.S. crude and product demand fell to 20.38 million bpd, the lowest since November, though demand was still up 2.2% year-over-year

Market Summary: U.S. Crude Production Steady in March

Key Production Data

U.S. crude oil production held steady at 13.7 million barrels per day (bpd) in March 2025, according to the Energy Information Administration (EIA). Texas production declined to 5.78 million bpd, a four-month low, while New Mexico output remained flat at 2.31 million bpd. Together, these states comprise the Permian Basin, which accounts for approximately half of total U.S. crude output.

Natural Gas and Demand Metrics

U.S. natural gas production increased to 135.52 billion cubic feet per day (bcfd) in March, up from 134.63 bcfd in February but below December's record of 136.01 bcfd. Texas set a new state record at 38.68 bcfd (up 0.8%), while Pennsylvania output fell 0.5% to 21.29 bcfd.

Total U.S. crude and product demand dropped to 20.38 million bpd, the lowest level since November, though year-over-year demand rose 2.2%.

Market Context

The report suggests production increases are expected beyond March as operators respond to elevated oil prices driven by conflict with Iran that began in late February. U.S. crude futures were trading around $88 per barrel on Friday, May 29, 2025.

Implications

The steady production figures reflect a transitional period before anticipated output increases in response to the high-price environment. The Texas production decline may be temporary, with operators likely ramping up activity given favorable pricing conditions. The natural gas sector shows continued growth, particularly in Texas, while demand fundamentals remain mixed with seasonal weakness offset by positive year-over-year growth.