WASHINGTON, July 10 — The figure that matters: 13.4 million barrels per day. That was the record for US crude oil production, set in December 2024, and it fundamentally changes the calculus for any discussion of tariffs on foreign oil. The bottom line: America’s status as the world’s largest oil producer provides a significant buffer against global supply disruptions.
The previous production record stood at 13.1 million barrels per day, set in November 2019. By December of last year, the US had blown past that mark.
By the numbers, the production story is concentrated in three states: Texas, New Mexico, and North Dakota. The Permian Basin, straddling Texas and New Mexico, is the most productive oil field in the country, pumping about 6 million barrels per day in 2024. US oil exports have also grown substantially, averaging 4 million barrels per day last year, making the US a net exporter of crude oil and petroleum products.
The Tariff Question
Investors will note that this domestic production strength could help mitigate the impact of proposed tariffs on Russian oil. The logic is straightforward: more domestic supply means less vulnerability to foreign supply shocks. But the picture is not entirely simple.
US refineries are configured to process different types of crude oil. Some rely on heavier grades, like those from Russia.
The proposed tariffs could increase costs for those refineries that import Russian oil, though such imports are already minimal. The figure that matters there is the small volume — the source material notes these imports are “already minimal,” meaning the direct exposure is limited.
The Strategic Reserve
The US Strategic Petroleum Reserve held about 375 million barrels as of early 2025. That is down sharply from 638 million barrels in 2020, after releases to stabilize prices during the Ukraine war. The SPR could be used to offset any supply shortages caused by tariffs.
The drawdown represents a significant reduction in the nation’s emergency oil cushion. The reserve was established after the 1973-74 oil embargo to protect the US economy from supply disruptions.
The current level, while lower, still provides a meaningful backstop.
What to Watch
The interplay between record domestic production, minimal Russian oil imports, and the remaining SPR inventory will determine how any tariff policy actually affects US fuel markets. The production numbers are the headline, but the refinery configuration issue is the detail that matters for specific sectors. Investors will be watching whether the Permian Basin can sustain or increase its 6 million barrels per day output.
The December 2024 record of 13.4 million barrels per day set a new benchmark, and the question is whether that pace can be maintained or exceeded. The bottom line: America’s energy position is fundamentally different from what it was even a few years ago.
Record production, growing exports, and net exporter status provide a cushion that did not exist during earlier supply crises. But the refinery configuration issue and the reduced SPR are the counterpoints that investors and policymakers will need to weigh.
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