By JOHN P. TRETBAR
Eagle Media
The status of the U.S. as a net exporter of crude oil lasted just one week. We now, once again, import more than we export. Last week, US Petroleum exports set an all-time record, and the US became net crude exporter for the first time since World War Two. The US Energy Information Administration's weekly report reflected the biggest-ever spike in the relatively short history of crude exports to an all-time high of just over 6.4 million barrels a day. Total petroleum exports topped 14 million barrels a day for the first time last week.
This week, crude exports drop by nearly two million barrels a day, to just over 4.7 million. That’s a 26% dip following a 34% spike last week. Crude imports are down a quarter million barrels a day to average 5.5 million.
Oil imports from Canada drop by 706,000 barrels a day, the second-biggest drop in crude deals with our northern neighbor since the kerfuffle over tariffs just over a year ago.
U.S. commercial crude-oil inventories drop by 2.3 million barrels this week to just over 457 million barrels as of May 1. EIA says that's about one percent above the five-year average for this time of year.
U.S. strategic stockpiles drop by another 5.2 million barrels this week as efforts continue to offset international supply problems with strategic reserves. The total at the U.S. Strategic Petroleum Reserves is now just under 393 million barrels, down more than six million barrels from a year ago.
U.S. crude production drops slightly to just over 13.5 million barrels a day. The four week average drops under 13.6 million for the second week in a row, but the cumulative average so far this year is just over that mark.
Regular gasoline on Monday (5/11) averages $4.52 a gallon in the U.S. and $4.08 across Kansas. We spotted $4.09 in Hays and $3.99 in Great Bend. Diesel averages $5.63 a gallon nationally and five fifteen $5.15 a gallon in Kansas.
The near-month NYMEX contract on Friday closed 61 cents higher, but down more than six dollars for the week, $95.42 per barrel. Prices on Monday rose two percent, topping $97 in New York. Dated Brent is fetching just over $106 a barrel, up three dollars from the price at the close of trading Friday.
Kansas Common crude at CHS starts the week at 85.50 per barrel after gaining a half dollar Friday. Prices in McPherson are down nearly seven dollars from the first of the month, but up about $38 a barrel from the first of the year.
The Rotary Rig Count from Baker Hughes is 548 active rigs nationwide. The number of gas rigs dropped by one this week, but the oil tally is up two rigs from a week ago. This week Texas is up two rigs; Louisiana is down two. Oklahoma is up one rig. The total number of active oil drilling rigs in the United States is down by 57 from a year ago. The tally in Texas is down 33 rigs from a year ago.
Independent Oil and Gas Service reports 20 active drilling rigs in Kansas this week. The count is unchanged at eleven rigs east of Wichita, and up one to nine rigs in Western Kansas. Operators Friday are moving in, rigging up, spudding, drilling or washing down on new wells in Ellis, Haskell, Rice and Graham counties, and two leases in Rooks County.
Operators completed 26 new wells this week, 260 so far this year, compared to 444 by this time last year. Of the six new well-completions in Western Kansas, one is in Barton County and two fall within Ellis County. Independent Oil and Gas Service reports 260 completions so far this year compared to 444 a year ago. The 232 new permits so far this year very nearly keep pace with last year's 258. Regulators okayed eleven new drilling locations this week, with seven new permits in eastern Kansas and four west of Wichita.
Kansas regulators report a big spike in good intentions last month, with intent-to-drill notices going from 67 in March to 105 in April. That's 250 so far this year, surpassing the total of 249 at this time last year. Barton County adds it's first of the year in April. Ellis County adds one for a total of seven this year. Gove County adds one last month for a total through April of three intents.