By JOHN P. TRETBAR
Eagle Media
US crude-oil production exceeded 13.6 million barrels a day in each of the four weekly government reports this month including a new all-time high this week. The Energy Information Administration reports average crude production of 13,644,000 barrels per day, up 15,000 from a week ago, and 8,000 barrels a day higher than the previous record high set just two weeks ago.
Crude oil imports fell last week by nearly a million barrels a day to just over five million. The four-week average is down more than five percent from a year ago. Crude exports rose slightly from last week to top four-thousand barrels a day for the third straight week.
Strategic crude inventories now trail commercial inventories by just under seven million barrels. The Energy Information Administration reports the Strategic Petroleum Reserves rose half a million barrels to just over 409 million.
Commercial stockpiles are down 6.9 million barrels this week. EIA says commercial inventories are about six percent below the five year average for this time of year.
Crude prices cap off four straight daily gains with a cumulative weekly loss of nearly a dollar. Near-month NYMEX crude ends the week Friday two pennies shy of $61 a barrel, then shied away even further on Monday. Brent crude in London drops under $65 a barrel as of Monday midday.
Kansas prices end the month of October a few cents higher. Kansas Common starts the month of November at fifty-one twenty-five ($51.25) per barrel. The average price for October is a dollar less than that. Prices at CHS in McPherson are down from $52 at the first of the month and $62 at the first of the year.
The Rotary Rig Count from Baker Hughes is down four at 546 active rigs. Louisiana, New Mexico and North Dakota were each up one, while the tallies in Texas, Wyoming and Colorado were each down one. The breakout for oil rigs is down six, and the count for horizontal rigs is down seven rigs.
The Kansas Rig Count from Independent Oil and Gas Service is down four active rigs in eastern Kansas and down three more West of Wichita for a total of 12 active rigs. The report shows an increase of five "cold-stacked rigs" from a week ago, a total that has held steady since March. Total active rigs are down 20 percent from a month ago and nearly 65 percent from a year ago. The number of active, licensed operators who have drilled a well in Kansas is now 169, down from 230 a year ago.
Kansas regulators okay eleven new drilling locations statewide, 563 so far this year, compared to 918 a year ago. Eight are west of Wichita including one in Finney County.
Operators completed 17 wells this week. Independent Oil and Gas Service reports 952 well-completions so far this year, compared to nearly 11-hundred a year ago.
The Kansas Corporation Commission reports 51 new intent-to-drill notices in October, That's 647 so far this year, compared to over a thousand through October last year, and more than 11-hundred through the first ten months of 2023. A search of the KCC Web site returns two new intents in Ellis County, two in Finney County, and one in Russell County.New US sanctions are having a Big impact on Big Russian oil. Russia's second-largest crude-oil producer announced it would sell its international assets in response to sanctions imposed by US President Donald Trump. Lukoil accounts for around two percent of global oil output, and has stakes in oil and gas projects in 11 countries. It has refineries in Bulgaria and Romania and a 45 percent stake in a refinery in the Netherlands. The company said in a statement that it was already talking with potential buyers.