Falling and Flatlining Rig Count
US is Pumping More Oil despite the falling and flatlining rig count, U.S. crude oil production managed to hit a monthly record-high in August 2023, boosted by productivity gains and more efficient operations.
U.S. exploration and production companies are drilling longer laterals and deploying rigs to the most promising areas to get more bang for their buck.
U.S. field production of crude oil reached 404.6 million barrels during the month of August, new EIA data showed this week, for an average of 13.05 million barrels per day—squarely breaking the previous record U.S. drillers set in July of 401.73 million barrels.
US is pumping more oil and it Increases in production catch sight in PADDs 1, 2, 3, and 4, with the largest percentage increase in production seen in PADD 4, which comprises Colorado, Idaho, Montana, Utah, and Wyoming. The largest actual increase is distinguish in PADD 2, which includes North Dakota, Illinois, and Kentucky, among other states.
Crude Oil Production Reached a Record High
In Texas, the top oil-producing state, crude oil production reached a record high of 5.7 million barrels per day (bpd) in August, per the most recent monthly energy economic analysis by Texas Oil & Gas Association (TXOGA) Chief Economist Dean Foreman.
“Texas’ production of oil and natural gas has achieved records despite relatively modest drilling activity. Productivity gains and leveraging wells that have been drilled but not yet completed have provided a tailwind,” Foreman wrote at the end of September.
Producers in the Permian in Texas and New Mexico and the other shale plays have boosted production of crude oil despite a loss of 117 rigs so far this year, per Baker Hughes data as of October 27.
U.S. crude oil producers have been shedding rigs for most of the year, while the rig count largely stabilized in October.
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Source: Oil Price
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