By JOHN P. TRETBAR
Eagle Media
The U.S. is preparing to intercept more ships transporting Venezuelan crude oil following the seizure of a tanker last week. The operation had been planned for weeks, in the ongoing U.S. push to take down the so-called "Shadow Fleet," evading oil sanctions worldwide for years. This was the first seizure of a ship leaving Venezuela, which has been under U.S. sanctions since 2019. The seizure of the tanker, which is dubbed the "Skipper," caused at least one shipper to temporarily suspend the voyages of three freshly loaded crude cargoes totaling nearly six million barrels.
Reuters reports the U.S. Treasury imposed sanctions on six supertankers that recently loaded crude in Venezuela, and on four Venezuelans, including three relatives of the country's first lady. It was not known whether the newly sanctioned ships were among those now targeted for interception.
Crude-oil imports are up more than half a million barrels a day from last week, and from last year, at just under 6.6 million barrels per day. Over the last four weeks, imports average about 6.2 million barrels a day. The Energy Information Administration says that's nearly eight percent less than the same four weeks last year. Crude-oil exports increase 11% to surpass four million barrels a day. The four week average is down a quarter million daily barrels from a year ago at 3.8 million.
US crude production this week is up 38,000 daily barrels to yet another all-time record high. The Energy Information Administration reports output of 13,853,000 barrels per day. The four-week average dips slightly from a week ago but remains over 13.8 million. Cumulative production for the year 2025 has now topped 13.5 million barrels per day, another historic first.
Strategic oil stocks rise by another 200,000 barrels as commercial inventories drop. EIA reports commercial stockpiles dipped under 426 million barrels as of December 5, down 0.5% from a week ago, but up nearly four percent from a year ago. The Strategic Petroleum Reserve now totals just a few barrels under 412 million, a five percent increase from a year ago, and about 200-million barrels shy of it's peak.
The Rotary Rig Count from Baker Hughes is down one gas rig but up one oil rig for a total of 548 active drilling rigs. The count in Texas is up two; New Mexico is down three. Louisiana is up one and Colorado is down one.
The Kansas Rig Count from Independent Oil and Gas Service is 15 statewide. The tally in Western Kansas is up three to ten rigs. The last time we checked, drilling was underway on leases in Stafford, Gove and Finney counties.
Independent Oil and Gas Service this week reports seven newly completed wells in eastern Kansas, and seven west of Wichita, including one well in Russell County.
Kansas regulators okayed 18 new drilling locations this week, with four in Western Kansas, including one in Ellis County and one in Russell County. The KCC has approved 635 new permits this year, compared to more than a thousand by this time last year.
The tally of Kansas wildcat wells drilled this year is down 23 percent. Independent Oil and Gas Service reports 94 wells completed in what amount to new fields in Kansas this year, which is down 28 wells. About 12% of the wells drilled so far this year have been wildcats. Total drilling activity is down 38% from a year ago.
An American company could soon take over sanctioned Russian oil and gas assets in Iraq. The huge "West Qurna Two" field pumps about ten percent of Iraq's crude output. Bloomberg reports the US government is backing a plan to transfer LukOil's stake to a US entity. Iraq's Oil Ministry last week said it’s approaching US companies to take over. Under current US sanctions, LukOil has until this Saturday, December 13th, to divest all of its international assets.