By JOHN P. TRETBAR
Three Asian countries are promising economic stimulus to offset the impact of the coronavirus. Bloomberg reports the move by China, Hong Kong and Singapore could buoy crude-oil demand. Beijing could even go so far as to lower corporate taxes. Worries about the economic impact of the virus waned last week, and crude prices recovered more than five percent, the biggest gain since September.
Kansas Comnon crude at CHS in McPherson gained 50 cents on Friday to start the week at $42.25 per barrel. That's nearly two dollars higher than a week ago, but is down more than two dollars from last year at this time.
The Kansas Geological Survey reports last year's total statewide crude-oil production through October reached 27.7 million barrels. Barton County pumped 133,000 barrels, bringing the total through October to 1.35 million barrels. Ellis County operators added 209,000 in October, bringing the total to 2.1 million barrels. Russell County operators produced over 124,000 barrels for the month, for a running total of 1.25 million barrels. Stafford County checked in with nearly 91,000 barrels (862,000 year-to-date).
The statewide rig count in Kansas was down one. Independent Oil & Gas Service reports 14 active rigs in Western Kansas, down one, and six east of Wichita, which is unchanged from last week. Drilling is underway on one lease in Ellis County and one in Stafford County. Baker Hughes reports 790 active drilling rigs across the U.S., an increase of two oil rigs. The count in Texas was up three and New Mexico was up one.
Independent Oil & Gas Service reports 16 new well completions for the week, 162 so far this year. There were six in eastern Kansas and ten west of Wichita, including one newly-completed well in Stafford County.
Kansas regulators posted eight new drilling permits last week, two east of Wichita and six out west. There are 85 new drilling permits so far this year.
U.S. operators set another weekly crude-production record last week. The government reports total production for the week ending February 7 of 12.987 million barrels per day. That's up 102,000 barrels per day from the week before.
The Energy Information Administration reported U.S. crude inventories of 442.5 million barrels, an increase of seven and a half million barrels. Stockpiles are about two percent below the five-year seasonal average. The government report on Wednesday marked a slightly higher increase than the American Petroleum Institute's estimate the day before.
EIA says U.S. crude oil imports averaged 7.0 million barrels per day last week, up by 363,000 barrels per day from the previous week. Over the past four weeks, crude oil imports averaged about 6.7 million barrels per day, 6.8% less than the same four-week period last year.
Oil by rail in the U.S. is up two-tenths of one percent from levels reported during last year's spike. The Association of American Railroads says the spike in Canada continues, increasing more than 72 percent from year-ago levels.
Kuwait and Saudi Arabia will start trial oil production from their jointly-operated oilfields in what has become known as the "Neutral Zone" between the two countries. Kuwait’s oil minister said trial production from the two fields will increase gradually till it reaches its normal levels, and expects production from the fields to reach 550,000 barrels per day before the end of the year. Production from the zone is divided between Kuwait and Saudi Arabia. The two countries agreed last year to end a five-year dispute over the border area, allowing production to resume.