According to Oklahoma Energy Today, citing the U.S. Energy Information Administration’s March 2026 Short-Term Energy Outlook, US crude oil production grew by 3%, or 350,000 barrels per day, in 2025, reaching a new annual record of 13.6 million b/d.
Permian Carries the Load
The Permian Basin accounted for nearly all of the production growth, adding 280,000 b/d to finish the year at 6.6 million b/d, which is 48% of total US output. Operator breakeven prices in the Midland Basin came in at $61 per barrel and $62 per barrel in the Delaware Basin, comfortably below the annual WTI average of $65 per barrel, which kept drilling economics viable even as prices fell from $77 per barrel in 2024.
The Eagle Ford and Bakken each held roughly 9% of total US production. Eagle Ford edged up 1.6% to 1.2 million b/d, while the Bakken slipped by 30,000 b/d to the same level. In the Gulf of Mexico, five new deepwater projects came online in 2025, including Whale, Ballymore, and Shenandoah, pushing federal offshore output up by 111,000 b/d to 1.9 million b/d for the year.
What makes the headline number more remarkable is that it came on fewer rigs and fewer wells. Active rig counts in the Lower 48 ran 5% below 2024 levels, and total wells drilled dropped 1%. Operators squeezed more oil out of the ground through continued efficiency gains, with new wells producing 2.9 million b/d and legacy wells producing 8.3 million b/d.
What It Means for Subcontractors
- Permian and Eagle Ford are where the work is. If your crews are not already positioned in west Texas, southeastern New Mexico, or south Texas, the production data confirms those basins are still the center of gravity for US onshore activity.
- Efficiency-driven drilling changes the service mix. Operators are doing more with fewer wells, meaning longer laterals, bigger frac stages, and more complex completions. Pressure pumping, wireline, and flowback crews should expect higher per-well intensity even as total well counts remain flat or decline.
- Lower WTI prices compress margins but have not stopped production. At $65 per barrel, operators are still profitable in the Permian, but budget discipline is tighter. Subcontractors should expect continued pressure on day rates and pricing negotiations, particularly outside the core Permian counties.
- Gulf of Mexico new project startups signal offshore maintenance demand. With five deepwater projects coming online in 2025, inspection, maintenance, and integrity work on those assets will build over the next two to three years. Offshore-capable service companies should monitor operator spending plans in the Gulf.
- Legacy well production at 8.3 million b/d means workover and production optimization work remains strong. A growing base of older wells creates steady demand for rod lift, ESP service, chemical treatment, and production testing crews across all major basins.
