EIA: US Oil Production for April declined from March - Jul 2

[dan_s]

Per EIA's 941 Report, which is our first look at actual U.S. oil production by state, U.S. oil production decline from 11,188,000 BOPD in March to 11,169,000 BOPD in April. How can this happen if the active rig count went up?

During the first quarter a lot of high quality DUC wells were completed. Upstream companies continued to complete more wells than they drilled in April, but the quality went down. Obviously, completing more wells than are being drilled cannot continue because "Good DUC well inventory" will be gone soon. We need at least 450 rigs drilling for oil before U.S. oil production will start increasing.

This morning, Baker Hughes reported that we have 376 rigs drilling for oil and 99 rigs drilling for gas in the U.S.

Based on EIA's weekly production estimates for May and June, U.S. oil production will remain flat for at least a few more month. Soon we will see tropical storm activity pick up in the Gulf of Mexico, which will push U.S. oil production below 11 million BOPD.

Our gasoline inventories are dangerously low, so if you are in the path of Hurricane Elsa I recommend that you fill up your gas tanks today.

OPEC+ is now in control of your gasoline prices. Send your Thank You notes to Washington, DC. Maybe we do need to complete the Keystone XL pipeline.