U.S. Oil Production Shatters Records in June - CVX, OXY, FANG Lead the Charge

American crude output just hit unprecedented levels—and energy giants are cashing in.

The Numbers Don't Lie

June's production surge wasn't just incremental—it was historic. The Permian Basin's output alone could power small nations, while fracking efficiencies reached levels that would make 2010s drillers blush. These companies aren't just extracting crude; they're printing money with steel and sand.

Market Realities vs. Wall Street Fantasies

While analysts debate peak oil demand, these producers keep pumping—and profiting. Their operational efficiencies defy the traditional cost curves, leveraging technology that cuts breakevens to levels that embarrass offshore projects. It's almost like making money matters more than ESG PowerPoints.

The crude keeps flowing whether Wall Street's betting on renewables or not—because at the end of the day, the market still runs on barrels, not virtue signals.

Elevate Your Investing Strategy:

• Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.

During June, oil production in America was 133,000 barrels per day more than in the same month of 2024, reaching a record production level of 13.58 million barrels of crude per day. The U.S. is the world’s largest producer of crude oil and an energy superpower.

The EIA says that supplies of crude and petroleum products in the U.S., a proxy for demand, ROSE by 684,000 barrels per day during June to their highest level since October 2024 at 21 million barrels a day. At the same time, gasoline demand rose in June to 9.23 million barrels per day, its highest level since July 2024, while jet fuel demand hit its highest reading since August 2018.

Too Much Production?

The record production comes as major U.S. oil companies such as Chevron (CVX), Occidental Petroleum (OXY), and Diamondback Energy (FANG) ramp up production in the Permian Basin region of Texas. U.S. President Donald TRUMP has been pushing oil and natural gas companies to “drill, baby, drill.”

However, there are concerns among energy and commodities analysts that there might be too much oil production underway, swamping the global market with supply and pushing crude prices lower. Those worries have been exacerbated by ongoing production increases from the Organization of the Petroleum Exporting Countries and its allies (OPEC+).

West Texas Intermediate (WTI) crude oil, the U.S. standard, is currently trading at $63.99 a barrel.

Is CVX Stock a Buy?

The stock of Chevron has a consensus Moderate Buy rating among 15 Wall Street analysts. That rating is based on 10 Buy and five Hold recommendations issued in the last three months. The average CVX price target of $170.67 implies 6.13% upside from current levels.