All articles tagged with #us crude oil production
The EIA predicts zero growth in US crude oil production for 2024, with a drop in production expected for the remainder of the year. The cold snap in January caused a temporary decline in production, and the EIA forecasts a return to near-record levels in February. This lack of production growth could support crude oil prices and help OPEC tighten the market, with a global oil supply deficit of 120,000 bpd expected for this year.
The total number of active drilling rigs for oil and gas in the United States fell by 2 to 619, with oil rigs down by 2 and gas rigs down by 1 compared to last year. U.S. crude oil production remained at 13.2 million bpd, while completion crews continued to decrease, reaching their lowest level since December 2021. Oil prices rose due to supply fears in the Red Sea, with WTI trading at $73.06 and Brent at $78.55.
The recent underwhelming OPEC+ meeting revealed dissent within the group about deeper cuts and production quotas, putting pressure on the alliance's efforts to maintain oil prices above $80 per barrel. With record-high U.S. crude oil production continuing to soar, OPEC+ and Saudi Arabia face the challenge of countering this surge and preventing it from undermining their price stabilization efforts. One potential solution for Saudi Arabia could be to flood the market with crude, sinking oil prices below the U.S. profitability threshold. However, the lack of a unanimous group-wide cut and the growing non-OPEC+ production pose risks to OPEC+ unity and oil prices.
U.S. crude oil production reached a record high in August, surpassing pre-pandemic levels, with field production reaching 404.6 million barrels, averaging 13.05 million barrels per day. The largest increase in production was seen in PADD 4, while Texas, home to the Permian Basin, also experienced a slight increase. Despite the record-breaking production, crude oil inventories in the U.S. remain close to where they started the year. The number of active drilling rigs in the U.S. is still 350 fewer than pre-pandemic levels.
The Energy Information Administration (EIA) predicts that US crude oil production will reach a record high of 12.76 million barrels per day (bpd) in 2023, an increase of 850,000 bpd from current levels. The EIA also forecasts a further rise to 13.09 million bpd in 2024. These projections are attributed to higher well-level productivity and increased crude oil prices. Additionally, the EIA expects global benchmark Brent crude oil prices to average $86 per barrel in the second half of 2023. The report also highlights rising US natural gas production and demand, with both expected to reach record highs in 2023.
Crude oil inventories in the US unexpectedly rose by 1.319 million barrels, while gasoline inventories saw a draw of 1.043 million barrels. The Strategic Petroleum Reserve remains at a 40-year low. Despite the crude build, oil prices for WTI and Brent were trading up, with WTI at $79.59 per barrel and Brent at $83.61 per barrel. US crude oil production remained stagnant at 12.3 million bpd, and inventories at Cushing, Oklahoma, fell by 2.34 million barrels.