U.S. crude oil production continues to break records

by Jeff Della Rosa (JDellaRosa@nwabj.com)

According to the U.S. Energy Information Administration (EIA), the United States has produced more crude oil than any other nation for the sixth consecutive year. In 2023, the production average of 12.9 million barrels per day exceeded the previous global record of 12.3 million barrels per day, set in 2019.

According to the EIA, the United States set a monthly production record of more than 13.3 million barrels per day in December 2023. The 2023 record set by the United States is unlikely to be broken by another country in the short term because no other country has reached a production capacity of 13 million barrels per day. Saudi Aramco, a state-owned company in Saudi Arabia, recently scrapped plans to increase production capacity to 13 million barrels per day by 2027.

The United States, Russia and Saudi Arabia accounted for 40% of global oil production in 2023. The three countries have produced more oil than any other since 1971. By comparison, the next largest three producers – Canada, Iraq and China – combined produced 13.1 million barrels per day in 2023.

U.S. crude oil production continues to break records

Fewer uncompleted wells may hurt oil production growth; coal-fired generation to fall

by Jeff Della Rosa (JDellaRosa@nwabj.com)

Crude oil production growth could be limited in the United States amid fewer drilled but uncompleted wells and natural gas pipeline constraints, according to the U.S. Energy Information Administration (EIA). Meanwhile, high natural gas prices aren’t expected to keep coal-fired electricity generation from declining this year.

Between July 2020 and September 2022, more oil wells were completed than were drilled in the United States. As a result, the number of drilled but uncompleted wells fell to 4,333, the fewest since at least December 2013.

The decline in the number of drilled but uncompleted wells has coincided with high oil prices and rising domestic production. According to Baker Hughes, the number of active oil rigs has risen to 610 as of Oct. 14 from 172 rigs on Aug. 14, 2020. While the number of active oil-directed rigs that drill new wells increased earlier this year, the rig count has remained flat since July, according to the EIA.

https://talkbusiness.net/2022/10/fewer-uncompleted-wells-may-hurt-oil-production-growth-coal-fired-generation-to-fall/

Report: Rising crude oil production should lead to lower fuel prices

by Jeff Della Rosa (JDellaRosa@nwabj.com)

U.S. crude oil production is expected to exceed pre-pandemic levels in 2023, and as production and inventories rise, fuel prices are expected to fall, according to the U.S. Energy Information Administration (EIA). The production is expected to average 12.4 million barrels per day in 2023, surpassing the record high set in 2019.

The EIA released Tuesday (Jan. 11) the January Short-Term Energy Outlook which projects that U.S. crude oil production will rise for nine consecutive quarters, from the fourth quarter of 2021 through 2023. Also, OPEC is expected to increase crude oil production to 28.9 million barrels per day in 2023, up from an average of 26.3 million barrels per day in 2021.

U.S. commercial crude oil inventories will rise to 465 million barrels at the end of 2023, which is about 11% higher than the inventories at the end of 2021.

https://talkbusiness.net/2022/01/report-rising-crude-oil-production-should-lead-to-lower-fuel-prices/