By JOHN P. TRETBAR
Three thousand barrels of crude oil leaked from an underwater pipeline in southern California, closing beaches and offshore production. The spill is believed to have originated Friday in a 17-mile pipe connecting drilling platforms owned by Amplify Energy. The pipeline was drained and divers were hoping to find the source and cause of the spill.
With oil prices surging 50% this year, the OPEC-Plus alliance has faced calls for additional crude supplies from big consumers including the U.S. and India. But the export alliance announced it is holding steady with the gradual production increases announced earlier, and prices jumped more than two percent to levels not seen since November of 2014. By lunchtime Monday, the benchmark Nymex futures contract was up nearly two dollars to $77.81 per barrel, after settling Friday at $75.88. That's an increase of more than two-and-a-half percent.
Kansas Common crude at CHS in McPherson starts the week at $66.25 per barrel after gaining a dollar on Friday. Kansas crude prices ended September on a high note, after starting the month under $59. The average for the month was just over $61.
Total crude production in Kansas in July increased more than 50,000 barrels over June, according to a report from the Energy Information Administration. But when measured in barrels per day the monthly average is slightly lower, at 77,000 barrels per day. EIA reports Kansas July production was down nearly six percent from a year earlier. Monthly crude production nationwide topped 11 million barrels per day once again, increasing slightly over June and up more than three percent over July of last year. EIA says Texas continues to lead the way, pumping roughly 42% of the U.S. total.
The Rig Count in Kansas was down one west of Wichita at 25 rigs, while in the eastern half of the state the count was up two at fourteen active rigs. Independent Oil & Gas Service reports drilling underway on one lease in Stafford County. Baker Hughes reports 528 active drilling rigs across the U.S. Friday, an increase of seven oil rigs. The count in Louisiana is up three. New Mexico is up two. Texas and Oklahoma are each up one.
Regulators approved 21 new drilling locations across the state of Kansas for the week, 784 so far this year. That's more than double last year's total by the beginning of October. There are nine new permits east of Wichita and 12 in Western Kansas, including one permit in Barton County, one in Russell County and two in Stafford County.
Independent Oil & Gas Service reports three newly-completed wells in Ellis County, and another in Barton County. Statewide, operators completed 18 wells this week, eight in eastern Kansas and ten west of Wichita. That's 648 new completions so far this year, down from 669 at this point last year.
The Kansas Corporation Commission reports 123 new intent-to-drill notices filed across Kansas last month. That's 868 new intents so far this year, compared to 393 by the end of the third quarter last year. There's one new notice in Barton County, four in Ellis County, two in Russell County, and seven in Stafford County.
The 27th Edition of the Independent Oil & Gas Directory of Kansas, the 2021-22 “Red Book”, is now available. You can find detailed information and order your copy at www.iogsi.com.
The Energy Information Administration notes more than 418 million barrels in crude stockpiles on September 24. That's up 4.6 million barrels from a week earlier, the first weekly increase since July. Stockpiles are about seven percent below the five-year average for this time of year.
U.S. refiners imported an average of 6.6 million barrels of crude per day last week, up 87,000 barrels per day from the week before. The four-week average is up nearly 19-percent a year ago.
U.S. crude-production topped 11 million barrels per day last week for the first time in a month. The Energy Information Administration weekly balance sheet shows production of 11.138 million barrels per day for the week through September 24. That's up more than half a million barrels per day from the week before and almost 400,000 barrels per day more than the same week a year ago. Average output was over eleven million barrels per day every week since June. But Hurricane Ida shut in more than 95% of offshore production in the Gulf of Mexico.
Gasoline prices reached a seven-year high last week according to Triple-A. Since then, the national average price for regular gasoline has dropped slightly, to $3.19 per gallon. Gasoline stockpiles increased by 200,000 barrels last week, according to the latest government data, but higher crude prices continue to prop up prices at the gas pump. The Kansas average is up slightly to just over $2.92 per gallon. Shop around in Hays to save up to a dime a gallon, with some stations still below three dollars. In Great Bend its going for $2.89 at most outlets.
Natural gas prices last week reached their highest levels since February of 2014, brought on by tight supplies in Europe and a slow restart in the Gulf of Mexico after Hurricane Ida. The benchmark Henry Hub prompt-month contract briefly topped six dollars per million BTUs, a first in seven years.
Oil-by-rail traffic is down slightly. The Association of American Railroads reports 10,444 tanker cars hauling petroleum last week, down 50 tankers from the week before. In Canada, the totals are more than 500 tankers higher than last week, and up 23% over last year.