U.S. Oil Production Growth stalls

[dan_s]

On July 31, 2018, Reuters reported U.S. crude production fell 30,000 b/d to 10.44 million b/d in May, as production declines in the Gulf of Mexico overshadowed gains in output from major shale basins. Production increased in Texas, New Mexico, North Dakota and Ohio in the month, according to a production report from the EIA. Production in North Dakota rose by 25,000 b/d, while Texas saw output climb 20,000 b/d in the month. Offshore production in the Gulf of Mexico declined 75,000 b/d, or nearly 5% in the month, and was down more than 10% from a year earlier. As a result, total U.S. crude output fell from a revised 10.47 million b/d in April, according to the EIA report. Despite falling on a monthly basis, total U.S. oil production was up 13.3% from a year earlier.

Demand marches higher

Demand for diesel fuel and other distillates rose 304,000 b/d or 7.7% percent from a year earlier to 4.3 million b/d in the month, the EIA said. Gasoline demand fell 40,000 b/d or 0.4% percent from a year earlier. As a result, total oil demand in May was up 318,000 b/d or 1.6% at 20.4 million b/d, the agency said.

[Hawker99]

Here is interesting series of charts on sagging oil production at a number of OCED countries.
And not even counting plunging Venezuela.

[dan_s]

Good post. Most people forget that outside of the U.S., Russia and OPEC, the "other countries" produce about 40% of this world's oil supply. The "Other Countries" are now on steady decline as a group.

[dan_s]

All of you should be reading carefully the July 30th Raymond James report and why they have increased their long-term oil price forecast.
Send an email to Sabrina at energyprospectus@gmail.com and she will send it to you.