Texas leads the way in oil production

Texas oil production in 2025 showed robust activity characterized by high volumes of Texas oil but with underlying signs of maturing shale plays, suggesting a shift towards optimizing existing resources and managing slower productivity gains.

Reports late in the year indicated oil production at around 122-128 million barrels monthly, driven heavily by the Permian Basin and projected to reach 6.6 million b/d, leading to projections of overall U.S. production records and continued high output.

Texas continues to supply a significant portion of the nation’s crude supply at around 42.7%, with the nation on pace for record production.

Key Texas counties like Martin, Midland, and Upton followed by Loving and Karnes, lead production, while industry sentiment reflects a slight pullback in new drilling despite strong overall output. Per-foot oil well productivity is declining, even as operators drill longer wells.

The Railroad Commission of Texas (RRC) provides monthly statistics, noting data changes occur for months as reports are filed. Current 2025 overall data on permits and wells that include December 2025 in Texas has not yet been released.