Domestic crude oil production in 2020 dropped 8% from the prior year in response to the demand hits caused by the coronavirus pandemic, the U.S. Energy Information Administration (EIA) said Tuesday. A record hurricane season further complicated matters. 

Oil Production

The 935,000 b/d decline to an average 11.3 million b/d last year marked the steepest annual decrease in U.S. production on record, EIA said. U.S. oil production had reached a record annual level in 2019.

Business lockdowns and travel restrictions in response to the pandemic’s onset last spring pummeled demand for fuels derived from oil, forcing producers to scale back output. West Texas Intermediate (WTI), the U.S. benchmark, traded at negative prices on April 20, 2020, EIA noted, the first time that happened since trading...