U.S. Oil Production Hits Record-Breaking 13.3 Million Barrels Per Day!

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  • Source: Wayne Dupree
  • 02/05/2024
Once again, the United States produces more than 13 million barrels of crude oil per day. U.S. operators increased daily production of crude oil by more than 700,000 barrels to 13,033,000 barrels for the week ending January 26. For the first time in over four months, the Energy Information Administration says that the four-week average output fell below 13 million barrels per day. The week ending September 29, 2023, was the last time the four-week average output fell below 13 million barrels per day.

In November, U.S. operators produced the highest monthly average ever, pumping almost 13.3 million barrels of crude oil per day.  According to the most recent official figures, there has been a daily rise of over 84,000 over the previous month.

According to the Energy Information Administration, Kansas is the eleventh state that produces oil. In November, the Sunflower State produced 2.2 million barrels, or 73,900 barrels per day. From the previous month, it is an almost daily increase of 1,000 barrels. Once again, Texas is in the forefront with 5.6 million barrels per day. Alaska, North Dakota, Colorado, and New Mexico complete the top five.

As of January 26, the government reported having more than 452 million barrels of oil on hand—a gain of more than four million barrels. Stockpiles at this time of year are around 4% higher than the five-year average.

According to the Energy Information Administration, last week saw a decrease in oil exports of more than 500,000 barrels per day to little less than 4 million barrels per day. A year ago, the four-week average of shipments was less than 700,000 barrels per day.

Crude imports into the United States increased to 5.6 million barrels per day, a weekly increase of 25,000 barrels. The average over the last four weeks has decreased by a million barrels per day to 6.2 million barrels per day, or roughly six percent less than it was a year ago.

Despite an almost six-dollar reduction in the last week, Kansas crude prices are still half a dollar higher than they were at the beginning of the year.  At CHS in McPherson, Kansas Common crude opened the week at $62.50 a barrel, down 1.5 dollars from Friday's close. A week before, that cost was more over $68.

The Nymex near-month contract for light sweet crude had a weekly decline of $5.73 per barrel, ending Friday's trading at $72.28 per barrel, down more than a dollar.  Monday saw a little decline in prices, with the New York benchmark contract falling below $72 a barrel.

In some areas of Kansas, muddy field conditions caused drilling activity to decrease, while in other areas it increased. According to Independent Oil & Gas Service, the number of rigs in Kansas has increased by 8% in the last week and by 5% over the previous year. There are 24 active drilling rigs west of Wichita, an increase of four rigs over the previous week, and 15 in eastern Kansas, a decrease of one.

One well in Ellis County and 10 in western Kansas were among the twenty-eight freshly completed wells reported by Independent Oil and Gas Service last week. 114 completions have occurred so far this year. Last week, regulators in the Sunflower State approved 10 additional drilling sites. One of them was in Barton County, while the other seven were located west of Wichita. That brings the total number of licenses this year for drilling at new areas to 73.

Thanks to two significant takeovers, two of the largest producers in the world anticipate significant growth in the Permian Basin this year. This year, Chevron expects growth of 10 percent. That is more than twice as fast as independently owned and publicly listed oil businesses, according to Bloomberg. The corporation is on track to pump one million barrels per day from the Permian by next year, almost surpassing the output of the whole state of North Dakota, thanks to its acquisition of Hess Corp. Though it expects to treble its entire output after it completes the $60 billion merger of Pioneer Natural Resources later this year, Exxon estimates production increase of over seven percent.


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