By JOHN P. TRETBAR
Eagle Media
Crude futures prices fall in seven consecutive trading sessions to two-month lows. NYMEX crude settles Thursday at $63.88 per barrel, down nearly half a dollar on the day and the first closing price below $64 since June 5. After some ups and downs the near-month contract ended the day on Friday unchanged at $63.88. a weekly loss of $3.45 per barrel.
Drooping prices in McPherson mirror those in London and New York. Kansas Common crude at CHS starts the week at $54.25 per barrel, after plummeting three dollars since the first of the month.
Kansas regulators okayed three new drilling permits in eastern Kansas and seven west of Wichita. That's 440 new drilling locations so far this year, compared to over 600 last year at this time.
Independent Oil and Gas Service reports new well-completions in Ellis, Stafford, and Finney County out of 11 in Western Kansas last week. Year-to-date, statewide, operators have completed 741 wells in Kansas compared to 791 a year ago.
The Kansas Rig Count from Independent Oil and Gas Service is up one rig west of Wichita at ten active rigs and unchanged in eastern Kansas, also with ten rigs. The statewide tally is up 67% from a month ago, but down 33% from a year ago. Operators are rigging up for a new spud in Stafford County. Drilling continued Friday on a lease in Ellis County and three in Gove County.
The Rotary Rig Count from Baker Hughes is down one rig at 539, dropping one gas rig but adding one oil rig. Oklahoma adds two active rigs, Texas is down two and New Mexico is down one.
U.S. crude production in May increased by 24-thousand barrels a day, topping 13.4 million daily barrels for a third consecutive month. The Energy Information Administration reports Kansas production of 69-thousand barrels a day. That's down two thousand barrels from April, and eight percent lower than in May of last year, but it matches the statewide average so far year. Output in Texas increased slightly to 5.7 million barrels a day, surpassing the next 12 states combined.
The U.S. added 200,000 barrels to the Strategic Petroleum Reserves, where stockpiles now stand at 403 million barrels. Since refill operations resumed in April of last year, the Energy Department has added 38 million barrels at markdowns of $20 to $30 from the $95 a barrel we sold it for three years ago.
The government says commercial crude inventories dropped by three million barrels, and are about six percent below the five year seasonal average.
U.S. crude production drops for the fifth time in six weeks. The Energy Information Administration reports output last week dropped below 13.3 million barrels a day for only the second time this year. Cumulative output so far this year is up two percent from a year ago, and remains above 13.4 million barrels a day.
Despite a spike in crude exports and declining imports, the US remains a net crude importer, with imports surpassing exports by 2.6 million barrels a day. Crude exports vaulted 620,000 daily barrels or 23% to 3.3 million barrels per day. Crude imports dropped by 174,000 barrels to six million barrels a day.
ConocoPhillips is selling assets in the Anadarko basin of Oklahoma for $1.3 BILLION. The deal is expected to close by the end of the year. The company announced increased production but lower earnings due to lower commodity prices. It's average realized price for crude oil during the first six months of the year was $45.77 per barrel, which is down 19 percent from a year earlier. Pumping nearly 2.4 million barrels of crude oil per day led to net earnings of two billion dollars.
Russia's crude-oil exports are dropping, but remain relatively high, and the government says their markets have shifted. With News from the Oil Patch...
From 2020 to 2024, Russia oil exports averaged five million barrels a day. That's down to 4.3 million as of June. The Energy Information Administration says Europe got 51% of Russia’s exports in 2020. That's down to 11 percent today, with most of that going to Turkey. The decline in Europe was offset by increases in Asia and the Pacific Islands, rising from 41% of Russia's sales five years ago to 81% now. China and India imported nearly five million barrels a day in the last year and a half. Prompting the Administration to announce new tariffs against both.
How hot was it was it? Hot enough to set new records for electricity demand...twice. EIA reports record high demand for electricity on July 28 and then again the next day: 745,000 megawatts. The government forecasts annual demand for electricity will rise by two percent this year, and again next year.