US crude oil production hit an all-time high of 13.2 million barrels per day last week, fully recovering from losses during the Covid pandemic. The passage discusses how ExxonMobil's $60 billion acquisition of Pioneer Natural Resources will strengthen its low-cost oil production in the Permian Basin in Texas, where costs per barrel are relatively low, and pipelines provide good access to markets. Higher productivity from modern rigs has allowed production to rebound without requiring as large an increase in rig counts as before. This points to the potential for further consolidation in the industry.