By John P. Tretbar
Eagle Communications
U.S. operators set an all-time record for crude oil production last week. According to the Energy Information Administration, domestic output averaged 13,218,000 barrels per day last week. That's the best weekly tally ever, 140,000 barrels per day higher than the previous record set in March of 2020. The Energy Information Administration says the total is up 298,000 barrels per day from a week ago and nearly 1.3 million barrels per day higher than a year ago.
Crude-oil inventories increased by 10.2 million barrels, the biggest weekly increase in stockpiles since February. The total, not including the Strategic Petroleum Reserve, is over 424 million barrels as of October 6. The government said U.S. crude imports averaged 6.3 million barrels per day, an increase of 115-thousand barrels per day.
Friday the 13th proved lucky for crude operators last week, after prices jumped by nearly five dollars. Friday's settlement on the Nymex for November light sweet crude was $87.69 per barrel, up $4.78 on the day. That's the highest closing price in nearly two weeks. Lunchtime prices Monday were slightly lower, trading over $87 in New York and a few cents over $90 a barrel in London. Kansas Common crude at CHS in McPherson starts the week at $78 a barrel spiking more than four dollars on Friday.
The Rotary Rig Count from Baker Hughes was 622 active drilling rigs, adding four oil rigs and subtracting one gas rig from last week's count. The total in Texas four rigs. New Mexico was down two.
The Kansas Rig Count from Independent Oil and Gas Service is up three east of Wichita to 15 active rigs, and unchanged at 25 rigs in western Kansas. The weekly tally is up eleven percent from a month ago but down 32% from a year ago. Drilling was underway on Friday on four leases in Ellis County and one in Stafford County.
Kansas operators have spudded 1,019 wells so far this year, down 24% from year ago. Total footage drilled lags last year by nearly 26%.
Regulators approved 50 new drilling locations statewide last week, with 40 new permits in eastern Kansas and ten west of Wichita including one in Ellis County.
Independent Oil and Gas Service reports operators in Kansas completed 30 new wells last week. Regulators in the #3 crude-producing state reported three-percent production growth in August.
North Dakota crude output topped 1.2 million barrels per day. The state's Department of Mineral Resources says preliminary numbers reflect an all-time record for natural gas production at more than 3.3 million cubic feet per day.
Exxon Mobil and Pioneer Natural Resources jointly announced an all-stock merger agreement worth more than $60 billion. The combined company will boast reserves of 16-billion barrels in the Permian Basin of Texas and New Mexico. Output is expected to double to roughly 1.3 million barrels per day. That could grow to about two million barrels per day in the next four years.
The government reports U.S. crude-oil exports during the first half of this year averaged a fraction less than four million barrels per day. That's the highest level since Congress lifted the ban on crude exports eight years ago.
The Energy Information Administration has reported a number of firsts and records during the first six months of this year. The U.S. set records for the export of propane and petroleum products. Production totals continue to approach the record, with July output up to the second highest ever.