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Petroleum. Alabama's three oil refineries combined can process about 141,000 barrels of crude oil per day. Alabama's economically recoverable crude oil reserves are small?only about 0.1% of the U.S. total.
The State Oil and Gas Board of Alabama is a regulatory agency of the State of Alabama with the statutory charge of preventing waste and promoting the conservation of oil and gas while ensuring the protection of both the environment and the correlative rights of owners.
Alabama's oil production has steadily increased from an average of just over five million barrels in 2009 to nine million barrels in 2015. Alabama's natural gas production has steadily declined since 2005 but has leveled since 2012 at about 200 billion cubic feet per year.
The 1955 oil discovery at Citronelle, a town above a geologic salt dome, finally launched a new drilling boom; five new Alabama oilfields were discovered by 1967. Mobil Oil Company drilled Alabama's first successful offshore natural gas well in 1981.
Alabama statewide summary oil and gas data that goes back to 1944 and contains information on the 17,575 wells that have been drilled in the state since that time. Alabama is ranked #15 in the US based on Barrels of Oil Equivalent (BOE) produced in May 2023.
Many of the Southwestern counties have a great deal of oil production. There is also activity in the Gulf waters off the Alabama coast. This offshore activity generates gas and any production occurring within state waters is subject to Alabama severance taxes.