Texas Oil Production: Evolution of a Giant, 2000-2025
At the turn of this century, Texas was a major oil producer — but not yet the dominant one. In 2000, energy analysts viewed the state’s output as a mature asset in slow, inevitable decline. Today, however, the Lone Star State is an “all of the above and below” energy powerhouse that produces nearly half of all U.S. oil production — and more crude oil than any country except Saudi Arabia and Russia.
As of today, Texas leads the nation in natural gas production, wind power generation, and has eclipsed all other U.S. states in utility-scale solar power generation. This series will explore 25 years of U.S. Energy Information Administration (EIA) data to trace these unexpected transformations — sector by sector — beginning with the oil boom that started it all.
Texas’ share of U.S. oil production has increased
In 2000, Texas accounted for 20.81% of total U.S. oil production. As depicted in the chart, Oil Production: Texas vs. U.S. Total (2000-2025), the shale revolution, which began in Texas in 2008, changed everything. Between 2008 and 2019 Texas’ production volumes tripled, contributing to a greater proportion of domestic production. By 2025, Texas production accounted for 42.34% of U.S. oil production.
Source: EIA Crude Oil Production, Accessed April-May 2026
Texas’ rise in oil production is unmatched
With regard to present-day oil production, there is a problem with using the phrase “peer states” because Texas has transformed into an oil giant without peers. Oil Production: Texas vs. Top 10 U.S. Oil-Producing States animates Texas’ dynamic growth. By the mid 2010s, New Mexico and North Dakota production increased as California and Alaska — which began the century as top producers — dramatically declined. The other top 10 oil-producing states (Colorado, Oklahoma, Wyoming, Utah and Ohio) trail behind.
By sheer volume, Texas’ oil production increased 373.47%, between 2000 and 2025, surging above the national pace. Production in the U.S. has only increased 132.74% during this time.
Source: EIA Crude Oil Production, Accessed April-May 2026
Texas dwarfs other states in share of total U.S. growth, 2000-2025
The chart, Oil Production: Share of 2000-2025 Growth vs. Percentage of 2025 U.S. Total Production illustrates the interaction of two variables for the top 10 oil-producing states:
- How much a state’s increase in production contributed to national production growth during the first quarter of this century, and
- How much that state contributed to total U.S. production in 2025. Texas rests in the top right corner, surpassing all top 10 peer states, accounting for 42.34% of total U.S. production in 2025 and 58.55% of the nation’s total oil production growth over the last 25 years.
Most other oil-producing states are clustered in the lower left of the chart, but both New Mexico and North Dakota have also experienced striking growth owing to the shale boom. New Mexico contributed 16.62% of total U.S. production in 2025 and accounted for 26.59% of U.S. growth from 2000 to 2025. North Dakota makes up only 3.44% of total U.S. production yet accounts for 13.73% of U.S. growth, capitalizing on resources from the Bakken formation.
Despite these admirable showings, the overall share of U.S. production growth by all other top states remains dwarfed by Texas. The two Permian Basin states combined (Texas and New Mexico) account for 58.86% of total 2025 production and 85.14% of total U.S. growth from 2000 to 2025. Notably, California and Alaska had a negative drag on overall U.S. growth, despite starting the millennium as top producers.
Source: EIA Crude Oil Production, Accessed April-May 2026
Texas oil is foundational to U.S. energy security
The overlay of a “do no harm” state policy environment against the backdrop of the shale revolution has allowed Texas to break away from its peers in oil and gas production. Texas plays an outsized role in sustaining U.S. energy security and the oil and gas industry plays a critical role in our state’s economy.
As a result, the industry’s growth is felt across the international market. There is perhaps no better demonstration of our state’s production power than the current conflict in the Middle East around the Strait of Hormuz that has squeezed global energy supply chains. As Texas’ production continues to lead the U.S., record numbers of oil tankers are heading to Texas ports to ease the global energy crisis.
