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Oil Production in the United States Rises, Matching Pandemic High

Oil Production in the United States Rises, Matching Pandemic High

Domestic crude oil production edged upward last week, the United States Energy Information Administration (EIA) reported Wednesday.

For the week ending April 1, U.S. crude oil production increased by 100,000 b/d. It is now at 11.8 million b/d, according to EIA’s latest Weekly Petroleum Status Report

It was yet another weekly uptick in domestic oil output after spending February and part of March in 11.6 million b/d territories.

EIA data showed a 2.4 million bbl week/week build in U.S. commercial crude oil inventories, which finished last week at 412.4 million bbl. Domestic crude stocks ended last week about 14% below the five-year average for this time of year.

Demand was 19.8 million b/d for the week ending April 1, staying essentially flat week/week and year/year.

During the past four weeks, demand averaged 20.4 million b/d, up 5.5% year/year. Motor gasoline consumption for the past four weeks averaged 8.7 million b/d, down 0.3% from the corresponding period in 2021. Meanwhile, distillate fuel demand averaged 3.9 million b/d for the four-week span, representing a 1.8% year/year increase. Jet fuel product supplied was 1.5 million b/d for the period, up 28.9% year/year.

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Source: Natural Gas Intel

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Lower Gas Prices

Permian Basin the Site of Oil and Gas Expansion to Lower Gas Prices Amid Russia Conflict

Triple-digit oil prices in the U.S. continued for the second month in a row. This is leading to increased operations and land deals in the nation’s most active oilfields in southeast New Mexico and West Texas. So what’s the current strategy in place to lower gas prices?

The Permian Basin saw rising fossil fuel activity throughout 2022 amid increased demand as COVID-19 subsided.

The invasion of Ukraine created further supply strains as it led to international condemnation of Russian leader Vladimir Putin and the removal of his country – the world’s second-highest oil producer – from the global market.

That supply disruption sent gas prices at the pump to $4 or more throughout New Mexico and the U.S. in the weeks since.

Some of the world’s largest oil and gas companies recently announced plans to increase their output from the Permian. This is with Chevron being the latest in announcing via an April 1 news release that it would increase its production in the region by 10 percent, amounting to about 1 million barrels a day by 2025.

That would be about a fifth of the about 5 million barrels a day produced in the Permian in 2021. Besides , this is per data from the U.S. Energy Information Administration.

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Source: Carlsbad Current-Argus

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oil prices ease

Oil Prices Ease as Nations Agree to Tap Reserves

Oil settled lower on Friday as members of the International Energy Agency (IEA) agreed to join in the largest-ever United States oil reserves release. This will surely result to oil prices ease.

Both Brent and US crude benchmarks settled down around 13 percent in their biggest weekly falls in two years after US President Joe Biden announced the release on Thursday.

Brent crude futures were down 32 cents, or 0.3 percent, at $104.39 a barrel. US West Texas Intermediate (WTI) crude futures fell $1.01, or 1 percent, at $99.27.

Biden announced a release of one million barrels per day (bpd) of crude oil for six months from May, which at 180 million barrels is the largest release ever from the US Strategic Petroleum Reserve (SPR).

Member countries of the IEA did not agree Friday on volumes or the commitments of each country at their emergency meeting, said Hidechika Koizumi, director of the international affairs division at Japan’s Ministry of Economy, Trade and Industry. He added that additional details could be known “within next week or so.”

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Source: ALJAZEERA

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Colorado Oil Production is Ramping Up Due to High Gas Price

With Gas Prices High, Colorado Oil Production is Ramping Up

The number of active oil wells in Colorado has nearly doubled in the last year. Is it a sign that high prices are bringing the industry back to life? What’s next with the Colorado oil production?

Production in Colorado had fallen 11 percent in 2021, continuing a slide that began as the COVID-19 pandemic dramatically reduced demand. New regulations made drilling more costly and investors started requiring more caution from producers.

Companies in Colorado pumped 152 million barrels of oil last year. This is according to the latest data from the Colorado Oil and Gas Conservation Commission. That’s the lowest production since 2017, and more than 20 percent off record numbers in 2019.

But this year, the war in Ukraine has disrupted energy markets and demand is rising as the pandemic eases, sending prices over $100 a barrel in recent weeks, well beyond what’s needed to profitably drill wells in Colorado. The number of drill rigs opening new wells in Colorado jumped from eight in March 2021 to 14 at the end of this month, according to Baker Hughes. That indicates more oil production is on the way.

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Source: CPR News

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U.S. Oil Production

U.S. Oil Production Recovery Speeds Up

Crude U.S oil production in the United States grew faster during the first quarter of the year. The Dallas Fed reported in its quarterly industry survey, noting that costs also increased.

Price sentiment in the industry was guardedly bullish. It is with a majority of respondents in the survey expect West Texas Intermediate to end in 2022. Projection is at between $80 and $90 per barrel. A much smaller portion—about 5 percent—expected WTI to end 2022 at between $110 and $120. Interestingly, a bigger portion of respondents believed the U.S. benchmark could end the year at more than $120 per barrel.

Another interesting outtake from the survey is the biggest portion of respondents in the survey, at 41 percent, believe a WTI price of between $80 and $100 is sufficient for more producers to switch to production growth mode. While the Dallas Fed’s own data supports this, based on reactions from the Biden administration, production has not been growing anywhere near fast enough.

However, it’s worth noting that about 30 percent of the respondents in the survey said that production growth plans were not dependent on oil prices. According to 59 percent, the main reason for production restraint was investor pressure to maintain capital discipline.

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Source: Oil Price

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Oil and Natural Gas Industry

Once Again, America’s Oil and Natural Gas Industry Stands Ready to Responsibly Meet Current and Future Demand

Oil and natural gas industry is a global commodity– their price is a result of supply and demand. Geopolitical disruptions like Russia’s brazen invasion of Ukraine cause unpredictability and extreme volatility in global energy markets.

International conflict and inflation at home are serious issues, and our industry is working hard to meet the moment while ensuring that we are responsibly producing and providing energy to the market in a way that meets current demand and future projections.

Domestic production supports national security, economic security, and global environmental goals.  But, in order for domestic production to help us fully realize these goals, it must be in a way that meets market demand, rather than reacting to volatility that could cause oversupply.

As demand continues to grow, so does our current and planned production. US oil production grew last year and output could rise as much as 900,000 barrels per day in 2022.  In the Permian Basin, our most prolific oil-producing basin, record-high oil production was just reached this month.  The Marcellus, the most prolific natural gas basin in the country, is also at record high production.

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Source: Real Clear Energy

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eia projects

EIA Projects That Oil and Gas Will Remain Dominant in the US Through 2050

WASHINGTON, DC – In its Annual Energy Outlook 2022 (AEO2022) Reference case. The US Energy Information Administration (EIA) projects that US energy consumption will grow through 2050. This is primarily through the population and economic growth.

In this case, the EIA says that renewable energy will be the fastest-growing energy source through 2050. Firstly, petroleum will have the largest share of energy consumption throughout that period. Secondly is natural gas.

The EIA projects that transportation and industrial processes will be the primary consumers of petroleum. Other liquids in the United States. It also projects that the consumption from the US industrial sector will grow more than twice as fast as any other end-use sector from 2021 to 2050. In the industrial sector, the greatest growth in demand for petroleum is for hydrocarbon gas liquids used as feedstock. Petroleum remains a major fuel for nonmanufacturing industries such as agriculture, construction, and mining, as well as for refining processes.

The EIA also projects that US consumption of natural gas will keep growing, primarily driven by expectations that natural gas prices will remain low compared with historical levels. The US industrial sector will be the largest consumer of natural gas, primarily by the chemical industries that use natural gas as a feedstock and by increased heat-and-power consumption across multiple industries. The bulk chemicals industry will be the largest industrial energy user throughout the projection period, and it contributes the most to the growth in energy consumption in the industrial sector as a whole.

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Source: Offshore

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U.S. Energy

U.S. Energy Secretary Granholm Calls on Oil and Gas Companies to Raise Output

With oil prices recently hitting the highest level since 2008, U.S Energy Secretary Jennifer Granholm took to the stage in front of a room full of energy executives with a simple message: raise output

“We are in an emergency, and we have to responsibly increase short-term supply where we can right now to stabilize the market and minimize harm to American families,” she said Wednesday at CERAWeek by S&P Global.

The U.S. has tapped the Strategic Petroleum Reserve twice in recent months — last week and in November — and Granholm said a third release is not off the table.

But she also called on the private sector — and Wall Street — to play a role at this pivotal time.

“I hope your investors are saying these words to you as well: In this moment of crisis, we need more supply … right now, we need oil and gas production to rise to meet current demand,” she said.

Oil and gas companies have fundamentally shifted their business models in the wake of the pandemic. While once it was about growth at all costs, a capital discipline now reigns supreme. Companies are paying down debt, announcing share buybacks, and hiking dividends. Along with those measures, they’ve pledged to keep a supply in check.

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Source: CNBC

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gas and oil production

Gas and Oil Production That is Domestically Expanded is What U.S Can ‘Counter to Russia’s Influence’ : American Petroleum Institute

Mike Sommers argued on Wednesday that American energy producers “are patriots”. He is the American Petroleum Institute (API) president and CEO.  Above all, the energy producers are supplying the world with natural gas and oil “during this time of crisis”. Therefore, how will the domestic gas and oil production of the U.S counter Russia’s influence?

In a statement released by API on Wednesday U.S will ban imports of Russian crude. This includes natural gas and coal. It is in response to the country’s invasion of Ukraine. The national trade association said, “We share the goal of reducing reliance on foreign energy sources and urge policymakers to advance American energy leadership and expand domestic production to counter Russia’s influence in global energy markets”.

For instance, the statement also noted that prior to Biden’s announcement, the industry has already taken significant and meaningful steps to unwind relationships. This is both with respect to assets in Russia as well as imports of Russian crude oil and refined products.”

Speaking with “Mornings with Maria” on Wednesday, Sommers stressed that the American oil and gas industry is stepping up amid a “crisis moment for the world.”

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Source: Fox Business

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Largest Oil and Natural Gas

Largest Oil and Natural Gas Producer | U.S. is World’s Top Despite Biden’s Energy-Constraining Policies

American energy producers have been punching above their weight. It is now making the U.S. the largest producer of oil and natural gas in the world. This is in less than a decade—with one major caveat.

But the good news first.

Take liquid natural gas for starters. In October 2021, LNG exporters in the U.S. were operating beyond capacity. And the U.S. Energy Information Administration expects the U.S. will export 16% more natural gas in 2022. This is compared to last year as American companies bring on more production and export capacity.

By the end of 2022, the U.S. will have the largest LNG export capacity in the world with the completion of the Sabine Pass and Calcasieu Pass facilities in Louisiana as well as upgrades to increase production at several existing facilities.

An eighth export facility in Texas is expected to come online by 2024, and the Federal Energy Regulatory Commission has approved several other projects that are not yet under construction.

Now, take a look at oil. In 2020—and even through the worst of the pandemic into 2021—U.S. producers of crude oil and petroleum products made the U.S. a net exporter for the first time since 1949.

The U.S. is the world’s single largest producer of crude oil, even as global demand has outpaced supply over the last year and has strained global markets. The Energy Information Administration cautiously projects crude oil production in the U.S. to continue growing to meet that demand over the next few years.

It’s hard to overstate how revolutionary the American

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Source: The Heritage Foundation

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