By JOHN P. TRETBAR
Eagle Communications
Crude production in the United States topped 13 million barrels per day for the tenth week in a row. The government says U.S. output last week increased by four thousand barrels a day from a week earlier to 13,135,000 barrels per day. The weekly tally surpassed 13 million barrels per day only twice before this year.
The Energy Information Administration says crude stockpiles dropped for the third week in a row and are about two percent below the five-year seasonal average. Inventories dropped more than four million barrels to just under 441 million barrels as of December 9.
U.S. crude imports were down one million barrels per day to 6.5 million. The four week average is slightly higher than a year ago.
Energy Information Administration is predicting record high U.S. crude exports next year. The agency's Short Term Energy Outlook forecasts an average of nearly two million barrels per day net exports next year. That would mark an increase of 200,000 barrels per day from this year, and an increase of 800,000 barrels per day from last year.
Kansas regulators okayed 19 new drilling permits last week, with seven in western Kansas including one in Ellis County and one in Russell County. Operators completed 36 new wells in Kansas last week, with 20 in western Kansas including two in Barton County and two in Ellis County. The Kansas Rig Count from Independent Oil & Gas Service is down 5.4 % (or two rigs) from last week, down 10.3% from a month ago, and down 30% from a year ago. Operators were about to spud new wells Monday on leases in Ellis and Russell counties.
Regular gasoline prices across Kansas are down 34 cents from last month at $2.75 per gallon. Diesel prices were a half dollar lower month-over-month at $3.77 per gallon. Your 15-gallon fill-up will cost you about two dollars less than last week and seven dollars less than a month ago. National prices have dropped more than 25 cents a gallon for both diesel and regular.
Kansas Common crude at CHS in McPherson starts the week at $61.75 per barrel. That's up about two dollars on the week but down more than five dollars a barrel from the first of the month.
The benchmark Nymex crude contract settled slightly lower Friday at $71.43 per barrel, but that marks a 20-cent weekly gain after seven consecutive weekly losses. Prices were two dollars higher by lunchtime Monday, with WTI trading over $73 a barrel and London Brent topping $78.
U.S. energy employment is booming. Oil patch payrolls grew by more than a thousand jobs in November across the U.S. to more than 652,000 jobs. That's according to a trade group called the Energy Workforce and Technology Council citing data from the Bureau of Labor Statistics. Nearly half of those jobs are in Texas. Job availability was up 0.2%, according to the report. Total oil patch employment is about 54,000 jobs away from pre-pandemic levels.
Oklahoma's energy tax collections are dwindling, dragging down the entire state budget. Total collections for the year through November 30 were down nearly $312 million from a year earlier, according to the latest general revenue fund report. Gross production taxes on oil and gas production in Oklahoma were down 29% from the preceding year, posting a drop of over $560 million.
Officials in New Mexico look to recycling to answer a two-fold water problem in the oil patch. The state used the United Nations Climate talks in Dubai to announce the plan. Reuters reports New Mexico will spend $500 million to buy treated wastewater that would normally be re-injected back into the ground. Supporters say a strategic water supply could support water-intensive industries. It could also take pressure off the arid state's dwindling water supplies, and relieve its re-injection wells. Officials will seek deals starting early next year.