U.S. Crude Production Surges In April

The Energy Information Administration reported that April crude oil production averaged 12.162 million barrels per day (mmbd), up 257,000 b/d from March. The rise resulted from a 107,000 b/d increase in Texas, a 77,000 b/d increase in the Gulf of Mexico (GOM), a 32,000 b/d increase in Oklahoma, a 14,000 b/d increase in Colorado, and a 13,000 b/d increase in Wyoming.

Crude Production

A pause in the growth rate in Texas had been expected due to pipeline constraints, which are expected to be alleviated in the second half of 2019 and the first half of 2020. Nonetheless, crude production set yet another record high in April.

Crude Production

The year-over-year gains have been especially impressive with the April figure being 1.687 mmbd. And this number only includes crude oil. Other supplies (liquids) that are part of the petroleum supply add to that. For April, that additional gain is about 630,000 b/d. Continue reading "U.S. Crude Production Surges In April"

U.S. Crude Production Rebounds In March

The Energy Information Administration reported that March crude oil production averaged 11.905 million barrels per day (mmbd), up 241,000 b/d from February. The rise was largely the result of the resumption of output from the Gulf of Mexico (GOM) which had been affected by unscheduled maintenance. Production rose by 191,000 b/d.

Crude Production

Elsewhere, there were gains of 42,000 b/d in North Dakota, 23,000 b/d in New Mexico and 16,000 b/d in Oklahoma. There was a decline of 17,000 b/d in Colorado and 5,000 b/d in Texas. A pause in the growth rate in Texas had been expected due to pipeline constraints which are expected to be alleviated in the second half of 2019. Nonetheless, crude production rose by a spectacular 1.441 mmbd from June through March. Continue reading "U.S. Crude Production Rebounds In March"

Iran Sanctions And OPEC's Deliberations Have Failed To Lift Oil Prices

OPEC+ members met over the weekend to discuss the oil market and the possible actions they may take at the next OPEC meetings scheduled for June 25th and 26th. OPEC’s press release reported:

Following its 14th Meeting, which took place on 19 May 2019, in Jeddah, the Kingdom of Saudi Arabia, the Joint Ministerial Monitoring Committee (JMMC) has reaffirmed its commitment to achieving a balanced market and working towards oil market stability on a sustainable basis with solid fundamentals.”

After the meeting, ministers spoke with reporters. According to reporting by CNBC:

Saudi Arabia’s influential oil minister, Khalid al-Falih, warned that global crude stockpiles are rising, threatening to swamp the world in oil and cause prices to collapse. Overall, the market is in a delicate situation. On the one hand, there is a lot of concern — and we acknowledge it — about disruptions and sanctions and supply interruptions. But on the other hand, we see inventories rising. We see plentiful supply around the world, which means we think, all in all, we should be in a comfortable situation in the weeks and months to come.” Continue reading "Iran Sanctions And OPEC's Deliberations Have Failed To Lift Oil Prices"

U.S. Crude Production In February Reflects Unscheduled GOM Maintenance

The Energy Information Administration reported that February crude oil production averaged a surprising 11.683 million barrels per day (mmbd), down 187,000 b/d from January. The drop was totally the result of unscheduled maintenance in the Gulf of Mexico (GOM), which averaged 1.719 mmbd. Production had been over 1.9 mmbd in November through January.

Crude Production

Despite drops in January and February, crude production still rose by a spectacular 1.219 mmbd from June through February, a period when capacity takeaway constraints had been expected to slow down the growth in Texas.

Production in Texas rose by 69,000 b/d to a record 4.890 mmbd. That was nearly offset by a decline in North Dakota of 64,000 b/d due to seasonal factors. Continue reading "U.S. Crude Production In February Reflects Unscheduled GOM Maintenance"

U.S. Crude Production In January Displays A Seasonal Lull

The Energy Information Administration reported that January crude oil production averaged 11.871 million barrels per day (mmbd), down 90,000 b/d from December. Despite the drop in January, crude production still rose by a spectacular 1.407 mmbd from June through January, a period when capacity takeaway constraints had been expected to slow down the growth in Texas.

crude production

The year-over-year gains have been especially impressive with the January figure being 1.876 mmbd. And this number only includes crude oil. Other supplies (liquids) that are part of the petroleum supply add to that. For January, that additional gain is about 6,950 b/d. Continue reading "U.S. Crude Production In January Displays A Seasonal Lull"