U.S. Oil Production may be peaking

[dan_s]

Per EIA's 914 report: Production of crude oil and lease condensate in the United States was 12,844,000 barrels per day in June.

The 914 report is the first look at what actual production was in the U.S. What the EIA reports weekly is just their WAG since they don't have gauges on every well in the country. Volumes produced in the 914 report come from state filings and the Feds for offshore. The volumes are adjusted for several months, but they are usually close to being accurate.

U.S. oil production actually declined slightly in April and May. Spring weather does hamper well completions.

Reuters: "After prices peaked in June 2022, the number of rigs drilling for oil peaked in December 2022 and had fallen 16% by August 2023, according to field services company Baker Hughes. Following the drilling peak, Lower 48 output is likely to peak in the third quarter of 2023, as exploration and production firms work their way through the inventory of drilled but uncompleted oil wells. Flat or falling Lower 48 production will contribute to a tightening global oil market during the final four months of 2023, especially since Saudi Arabia and Russia are set to maintain their own production cuts."

Read more: https://www.reuters.com/markets/commodities/us-oil-gas-output-nears-peak-2023-09-01/