In this article, we are going to discuss the 5 states with the largest oil reserves in the US. If you want to check out our detailed analysis of the economic contributions of the American oil and gas sector, the strategic petroleum reserve of the United States, and the use of artificial intelligence in the oil and gas industry, head to 15 States with the Largest Oil Reserves in the US.
5. Oklahoma
Total Proved Oil Reserves in 2021: 1.739 billion barrels
By the time Oklahoma became a state in 1907, it was the largest crude oil producer in the country. The Sooner State’s oil reserves lie within a vast reserve called the Mid-Continent Region, an area that also encompasses Kansas, Texas, Arkansas, Louisiana, and New Mexico.
Oklahoma’s oil and natural gas industry is by far the largest taxpayer in the state, and over the last decade, approximately $2.1 billion in funds have been apportioned solely for education – an average of more than 200 million annually.
4. Alaska
Total Proved Oil Reserves in 2021: 3.179 billion barrels
The oil and gas industry supports nearly 70,000 jobs in Alaska – a figure that could grow even further as the industry expects to invest another $14 billion in various projects in the next five years.
However, in September 2023, the White House scrapped controversial oil leases in an Alaskan wildlife reserve that were awarded in the final days of the Trump administration as part of a broad effort to clamp down on Arctic drilling. Their cancellation comes as President Joe Biden’s administration looks to burnish its environmental credentials in the face of criticism over support for fossil fuel projects.
Alaska’s National Petroleum Reserve is a 23 million acre area on the state’s North Slope, which was set aside as an emergency oil supply for the U.S. Navy in 1923. The area’s Prudhoe Bay Oil Field is one of the Largest Oil Fields in the U.S.
3. North Dakota
Total Proved Oil Reserves in 2021: 4.361 billion barrels
North Dakota holds around 10.6% of the total oil reserves in America and the state’s oil and gas industry remains a powerhouse for its economy, accounting for more than $42.6 billion in gross business volume, nearly 50,000 jobs, and $3.8 billion in state and local tax revenues in 2021.
The Bakken formation in western ND constitutes one of the largest deposits of oil and natural gas in the United States.
2. New Mexico
Total Proved Oil Reserves in 2021: 4.909 billion barrels
The annual oil production in New Mexico has more than doubled over the last five years, and in 2022, the state accounted for more than 13% of the total U.S. crude oil production and 6% of the country’s total natural gas gross withdrawals.
The Permian Basin, stretching across southeastern New Mexico and portions of western Texas, is the most prolific shale-oil producing region in the United States.
New Mexico is counted among the Top 3 States with the Largest Oil Reserves.
1. Texas
Total Proved Oil Reserves in 2021: 18.62 billion barrels
The Lone Star State’s oil and gas industry paid $26.3 billion in state and local taxes in 2023, $1.5 billion more than the previous year, due in part to record production last year.
The total proved reserves of crude oil and lease condensate in Texas increased by 12%, or 1.9 billion barrels, in 2021. Situated in South Texas, the Eagle Ford Shale is one of the largest unconventional oil fields in the United States. Headquartered in Houston, the oil giant ConocoPhillips is among the companies that own the most oil reserves in America.
Texas is also the state with the most oil refineries and accounts for one-third of the country’s total refining capacity. The state’s 32 oil refineries process a combined total of 5.9 million barrels a day.
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