The Energy Information Administration (EIA) reported that December U.S. crude production averaged 9.949 million barrels per day (mmbd) in December, off 108,000 b/d from November. The primary cause of the decline was unexpected seasonal factors, which caused production in the Gulf of Mexico (GOM) to drop by 131,000 b/d and output in North Dakota to dip by 15,000 b/d. The EIA had expected a 30,000 b/d dip in GOM production. Meanwhile, production in Texas and New Mexico reached new historically-high levels of 3.933 mmbd and 556,000 b/d, rising 36,000 b/d and 26,000 b/d, respectively.
It is worth noting that EIA also revised its November estimate up by 19,000 b/d to 10.057 mmbd. As a result, November 2017 broke the November 1970 production record of 10.044 mmbd.
Even with December’s seasonal drop, the EIA-914 Petroleum Supply Monthly (PSM) figure was still 193,000 b/d higher than the week data reported by EIA in the Weekly Petroleum Supply Report (WPSR), averaged for the month, of 9.756 mmbd. EIA’s model failed to forecast the surge in production which began in August and totaled 846,000 b/d through November. Continue reading "U.S. Crude Production Eased In December"