US Is Producing More Oil Under Biden Than At Any Point Under The Trump Administration

The U.S. oil production rose to new all-time highs during the third quarter, according to the U.S. Energy Information Administration.

U.S. oil production reached 13.13 million barrels per day (MMbpd) in the third quarter, with that figure expected to rise to 13.16 MMbpd in the fourth quarter, significantly higher than the original forecast of 12.94 MMbpd. 

Ramping Up: The third quarter's oil production surpassed the previous all-time high in 2020, before the COVID-19 pandemic. According to a data analysis from Environment and Energy News, the Bureau of Land Management approved more oil and gas leases on federal land in President Joe Biden’s first two years than former President Donald Trump did during the same time at the beginning of his administration in 2017.

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Bill Adams, chief economist for Comerica Bank, says the rise in domestic oil production makes it less likely that the U.S. will have a 1970s-type of stagflation, which was in part due to oil supply shocks. 

“Since inflation reared its ugly head a few years ago, many observers have worried about a return to 1970s-style stagflation,” Adams said. “But since oil supply shocks were a big part of the problem in the 1970s, rising U.S. energy production today makes that risk less likely. Unlike in the 1970s, the U.S. is a net exporter of petroleum products.”

The rise in oil production comes amid a drop in crude oil as well as gasoline prices. The United States Oil ETF USO is down about 5% in the last month after hitting 52-week highs late in September. Major oil companies such as Exxon Mobil Corp XOM and Chevron Corporation CVX have seen their share prices drop throughout the last few weeks along with oil prices, according to Benzinga Pro. 

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