By JOHN P. TRETBAR
The latest government reports show demand for regular gasoline is dropping and supplies are rising. Thus the national average price for a gallon of regular dropped three cents last week, to $3.88 per gallon. Diesel prices continue to rise. The Energy Information Administration reports diesel inventories were down nearly five million barrels last week, and are about 23% below the five-year seasonal average. Diesel fuel deliveries are down nearly four percent. The average price for diesel at the pump nationwide was just over $5.27 per gallon last week, up 30 cents from a month ago, and a $1.74 higher than a year ago.
Kansas Common crude at CHS in McPherson dropped more than three dollars on Friday to start the week at $75.75 per barrel. That's up six dollars a barrel from the first of the month, but down more than seven dollars from a week ago.
The Rotary Rig Count from Baker Hughes was up eight oil rigs. The count in Texas was up five; New Mexico was down four. The Rig Count in Kansas was up one west of Wichita at 32 active rigs. Independent Oil & Gas Service reported operators were preparing to spud new wells in Barton and Stafford counties on Friday.
State regulators report slight increases in Kansas crude output, both statewide and in our area. Operators across Kansas pumped more than 11.5 million barrels through May, the latest numbers available from the Kansas Geological Survey. That's over 76,000 barrels per day. Barton County output is just under 4,000 barrels per day with production of 596,000 barrels through May. Ellis County pumped 905,000 barrels, or nearly 6,000 barrels per day. Russell County output through May stands at 545,000 barrels, or 3,600 barrels per day. The tally in Stafford County is 383,000 barrels or 2,500 barrels per day.
Kansas regulators okay 21 new drilling permits. There are five new permits east of Wichita and 16 in Western Kansas, including one in Barton County and three in Ellis County. Independent Oil & Gas Service reports 19 new well-completions last week, with ten in eastern Kansas and nine west of Wichita including three in Barton County and one in Ellis County. Operators have completed 1,256 wells so far this year, compared to 680 at this time last year.
The government says U.S. crude stockpiles last week rose by nearly ten million barrels to just over 439 million, or about one percent below the five-year seasonal average. Gasoline stockpiles were also higher. But diesel inventories, and production, were lower. EIA reports average crude imports of 6.1 million barrels per day last week, up 100,000 barrels from the week before.
U.S. crude production dropped below 12 million barrels per day last week for the first time in 12 weeks. The Energy Information Administration reports output during the week through October 7 averaged 11.932 million barrels per day. That's down 106,000 barrels per day from the week before, but is nearly 600,000 barrels per day ahead of the same week last year.
In its weekly Short Term Energy Outlook, the government predicts rising U.S. crude output for the rest of this year and record output next year. EIA forecasts U.S. production of 12.4 million barrels per day next year, which would surpass the record set in 2019.
The Federal Reserve Bank of Kansas City reports mixed results, but solid growth in the energy industry hereabouts. A quarterly report in the Fed's District 10 notes the pace of growth slowed slightly in both profits and revenues. But the oil patch posted the highest level of employment gains in the history of the quarterly survey. The 10th District includes all of Kansas, Oklahoma Nebraska Colorado, and Wyoming along with parts of Missouri and New Mexico.