How U.S. Oil & Gas Wells Are Evolving: What the Latest EIA Data Reveals

Tony Zelinski
14 minutes ago
2 min read

The U.S. oil and natural gas landscape continues to transform, shaped by technology, shifting production patterns, and the long arc of resource development. The latest U.S. Oil and Natural Gas Wells by Production Rate report from the Energy Information Administration offers a detailed look at how the nation’s well inventory is changing—and what those changes signal for the future of American energy.

Production Is Rising—Even as Well Counts Decline

One of the most striking trends is the divergence between production volumes and the number of producing wells.

U.S. oil production averaged 13.3 million barrels per day in December 2023, rising to 13.4 million b/d in December 2024.
Natural gas production followed a similar path, increasing from 128.0 Bcf/d to 128.8 Bcf/d over the same period.

Yet the total number of producing wells continues to fall. After peaking at 1,031,161 wells in 2014, the count dropped to 930,445 in 2023 and declined further to 918,481 in 2024.

This decoupling—higher output from fewer wells—underscores the impact of technology, efficiency gains, and the dominance of high‑productivity unconventional plays.

Horizontal Wells Continue Their Climb

Horizontal drilling remains the backbone of modern U.S. production. In 2014, horizontal wells represented just 10% of the national well inventory. By 2024, that share more than doubled to 22%.

This shift reflects:

The maturation of shale development
Improved drilling and completion techniques
Operators’ focus on fewer, more productive wells rather than broad, shallow development

Horizontal wells now anchor the production base, especially in regions like the Permian, where associated gas output has surged in recent years.

A Small Share of Wells Drives Most Production

Since 2018, more than two‑thirds of U.S. oil and natural gas production has consistently come from wells producing between 100 and 3,200 BOE/d. These mid‑to‑high‑productivity wells form the core of the nation’s supply.

But the broader well population tells a different story: Approximately 78% of all U.S. wells produce 15 BOE/d or less—a slight decline from the long‑standing 80% share observed from 2000 to 2022.

This imbalance highlights the dual nature of U.S. production:

A small number of highly productive wells drive national output
A vast population of marginal wells continues to operate, often for economic, regulatory, or land‑use reasons

Data Quality Still Varies by State

The EIA notes that well‑level reporting remains inconsistent across states. Some states delay reporting by years, while others do not provide well‑level data at all. For late‑reporting states—Arizona, Kentucky, Maryland, Missouri, and Tennessee—the EIA fills gaps using the most recent available year to maintain national completeness.

This patchwork underscores the ongoing challenge of building a unified, real‑time picture of U.S. well activity.

Why This Matters for the Energy Outlook

The trends in this report point to a U.S. energy system that is:

More efficient, producing more with fewer wells
More technologically advanced, driven by horizontal drilling and modern completions
More concentrated, with a small share of wells delivering the majority of output
More dependent on high‑productivity basins, especially the Permian

For operators, policymakers, and energy consumers, these dynamics shape everything from investment decisions to infrastructure planning and long‑term supply expectations.

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