By JOHN P. TRETBAR
Eagle Media
New York crude prices rose two dollars a barrel on Monday, wiping out two dollar weekly losses last week. Prices were up nearly three percent in lunchtime trading Tuesday. Near-month NYMEX crude was over $71 a barrel and London Brent was rising toward $75. Kansas Common crude at CHS in McPherson starts the week at $59.75 per barrel after gaining a quarter a barrel on Friday.
US crude-oil production in August is up 1.5% over July, averaging 13.4 million barrels a day. That's the highest monthly average in history. The U.S. Energy Information Administration reports production totaled 415 million barrels nationwide, up 2.7% year-over-year. Kansas output rose 1.4%, for a total of 2,387,000 barrels or 77,000 barrels a day. We now drop to number 13 in the state rankings, lagging behind Montana and Louisiana. Texas produced nearly half of the national total at 180 million barrels, or 5.8 million barrels a day. That's more than all the other states combined.
Domestic crude-oil production topped 13.5 million barrels a day for a third week in a row last week, setting another all-time weekly record at 13,535,000 barrels per day. The Energy Information Administration reports cumulative production so far this year is also at an all-time high over 13.2 million daily barrels.
The Rotary Rig Count from Baker Hughes was up one gas rig but down one oil rig for a total of 585 active drilling rigs. Texas was down two. Oklahoma was down one. North Dakota, Utah and Pennsylvania were each up one rig.
The Kansas Rig Count is up nearly 31% to 34 active drilling rigs, with 15 in eastern Kansas, up five, and 19 west of Wichita, which is up three for the week. The statewide tally is up 21% over a month ago but down nearly six percent from last year at this time. Operators were drilling or about to start on four leases in Barton County, one in Ellis County and one in Stafford County on Friday. Independent Oil and Gas also reports drilling activity on leases in Finney and Haskell counties.
Independent Oil and Gas Service reports nine new well-completions last week, with five in eastern Kansas and four west of Wichita. That's 1,091 so far this year, down from 1,399 by the end of October last year. Kansas regulators report 43 new drilling locations with permits statewide, with 13 in Western Kansas including one in Ellis County and one in Stafford County. The state reports 961 new drilling permits so far this year, compared to 1,115 through October of 2023.
Crude-oil imports last week outpaced crude exports by 1.7 million barrels a day. Petroleum product exports dwarf imports by nearly five million barrels a day. Crude imports for the week through October 25th were down nearly half a million barrels a day from the week before at six million barrels per day. The four week average is down more than two percent from a year ago. Crude exports averaged 4.3 million barrels a day. The four-week average is down more than seven percent from a year ago at just over four million barrels a day.
US commercial crude stockpiles dropped half a million barrels to 425.5 million as of October 25th. Stockpiles are about four percent below the five year average for this time of year.
The government added 1.2 million barrels to the Strategic Petroleum Reserve, raising the total to more than 385 million barrels. DOE has added more than 21 million barrels since resuming refill operations last April. The government announced what could be last call for SPR refills for the near future. An announcement from the Strategic Petroleum Reserve Project Management Office seeks three million barrels of US sour crude for delivery in April and May at a price no higher than $79.99 per barrel. The purchase would leave the government with little money to buy more until lawmakers replenish the purchase funding. The Biden administration, or the next one, will need to work with Congress to fill up the SPR purchasing fund. It is unclear exactly how much money is left in that fund. DOE told Reuters on last week that if the prices are right, they will continue to buy crude with available emergency revenues. The Energy Department has now bought back more than 55 million barrels at an average price of about $76 per barrel, nearly $20 lower than the $95 a barrel price it sold the oil for in 2022.
Supplies are down and demand is up, but the national average for regular gasoline Thursday was down nearly 35 cents per gallon from a year ago, at $3.13 per gallon. Kansas was one of 20 states with average pump prices below $3 a gallon. The statewide average for regular was $2.78 a gallon, according to the auto club AAA. Diesel prices were also lower despite relatively low supplies and increasing demand. The national average for diesel is down a dollar and a dime from last year at $3.55 per gallon. In Kansas the average of $3.25 down $1.34 per gallon year-over-year.