By JOHN P. TRETBAR
Eagle Communications
The U.S. is topping weekly production records with each passing week.
The Energy Information Administration reports average output in the United States has surpassed 13 million barrels per day in each of the last four weekly reports. Prior to last month, that had only happened twice, back in the spring of 2020. The current record was set in the week through Oct. 27 at 13,233,000 barrels per day an increase of 3,000 barrels per day from the week before.
Kansas output in August was number eleven on the state rankings at just under 2.3 million barrels. That's 74,000 barrels per day, down 225 barrels per day from the July average. Kansas is among five crude-producing states showing declines in production, even as other states take aim at output records. Oklahoma, Alaska, California and Mississippi also posted declines in August, a month that saw record production nationwide and in several states. Texas produced with 5.6 million barrels per day. This marks the fifth time this year Texas has produced more crude oil than all other states combined.
Energy Information Administration reported an increase in domestic crude inventories last week, up 800,000 barrels to just under 422 million barrels as of October 27. Stockpiles are about five percent below the five-year average for this time of year.
Crude imports averaged over six million barrels per day last week, up nearly half a million barrels from the week before. The four week average is up nearly 1.5% from a year ago.
Kansas regulators okayed 29 permits for new drilling locations last week, 15 of them in western Kansas, including two in Ellis County. The year-to-date tally is 1,115, down from 1,400 a year ago, but up from 966 through October of 2021. Independent Oil & Gas Service reports 34 newly completed wells statewide, sixteen of them west of Wichita, including three in Barton County and two in Stafford County. The 1,433 statewide completions so far this year outnumber last year by 75 wells, and nearly double the count through October, 2021.
Baker Hughes reports 618 active drilling rigs as of November 3. The count in Texas was down seven rigs, New Mexico was up four. Oklahoma was down one rig. Independent Oil and Gas Service reports 15 active drilling rigs in eastern Kansas, which is up one for the week, and 21 west of Wichita, which is unchanged from last week. The Kansas Rig Count is down 28% or 15 rigs from a year ago.
Drilling got underway Friday on two leases in Barton County and one in Ellis County.
Kansas regulators report 197 new intent-to-drill notices across the state last month, including five in Barton County and six in Ellis County. The Kansas Corporation Commission lists 1,188 new intents for the first nine months of the year, compared to 1,457 through October last year. So far this year, Barton County has 36 intents on file. Ellis County has 43. Russell County has five and Stafford County adds 24.
Oil-by-rail traffic for the week through October 28 was up more than 13% over a year ago. At 9,976 tanker carloads, rail shipments increased by 33 carloads over the week before. Petroleum shipments were one of nine cargo categories that saw increases in October. The Association of American Railroads reports an increase of 5,046 carloads or 14.2 percent over last October.
It could take several months, but three U.S. refineries are included in the upcoming auction of the Venezuelan company Citgo as part of the Administration's move to relax sanctions against that country. According to the Energy Information Administration, the three refineries together account for about five percent of U.S. refining capacity. The refineries are built for the sour, heavy crude grades once supplied by Venezuelan oil fields. On October 23, marketing materials were offered to potential buyers, marking the formal beginning of the process to auction off the company.