Crude Oil Supply

[dan_s]

This is interesting.

EIA: U.S. crude oil output falls in December for first time since May:
Reuters Flash Alert
"U.S. crude oil production edged lower in December to 11.85 million barrels per day, its first decline since May, the U.S. Energy Information Administration said in a monthly report on Thursday. Production fell 56,000 bpd from a record 11.91 million bpd in November, the agency said. While output rose in Texas and North Dakota, the largest onshore oil-producing states, the gains were offset by production declines in the U.S. Gulf of Mexico. Production in onshore formations in Texas rose by 35,000 bpd in the month and in North Dakota by 18,000 bpd, while production in the federal waters of the Gulf of Mexico fell by 125,000 bpd, according to the report. Meanwhile, gross natural gas production in the Lower 48 states rose for an 11th month in a row to an all-time high of 98.0 billion cubic feet per day in December, up from the prior record of 97.9 bcfd in November, according to the EIA’s 914 production report."

Note that despite rapidly increasing natural gas production, gas in U.S. storage is over 400 Bcf BELOW the 5-year average. It is my opinion that EIA continues to grossly under-estimate demand for U.S. gas which is the cheapest form of energy on Earth.