In what year did American crude oil production exceed domestic demand for the first time in a decade?

In what year did American crude oil production exceed domestic demand for the first time in a decade?

• A. 1922
• B. 1920
• C. 1923
• D. 1924

Answer: (C)

The situation tests how crude oil output compares to what the country uses domestically, and when production first outpaced that demand in the early 1920s. By 1923, U.S. crude production had surged to a level that exceeded domestic consumption for the first time in about ten years. This jump came as new oil fields came online and drilling technology improved, especially in Texas and surrounding areas, fueling a rapid buildup in supply. Domestic demand, while growing, couldn’t absorb all that extra oil, leading to surplus inventory and downward pressure on prices. The earlier years didn’t reach that point, so 1923 is the year that marks production surpassing demand for the first time in a decade.

The situation tests how crude oil output compares to what the country uses domestically, and when production first outpaced that demand in the early 1920s. By 1923, U.S. crude production had surged to a level that exceeded domestic consumption for the first time in about ten years. This jump came as new oil fields came online and drilling technology improved, especially in Texas and surrounding areas, fueling a rapid buildup in supply. Domestic demand, while growing, couldn’t absorb all that extra oil, leading to surplus inventory and downward pressure on prices. The earlier years didn’t reach that point, so 1923 is the year that marks production surpassing demand for the first time in a decade.