July 3, 2019

July 3, 2019

3rd July 2019

Oil Drilling Activity

Onshore US drilling activity dropped 2 with a total active count of 936 rigs; those targeting oil down 5, with the total at 788. Across the three major unconventional oil basins, the oil rig count is up 2, with Permian up 2, Williston and Eagle Ford flat.

Sources: EIA Weekly Update and GCA Analysis

US domestic crude output increased by 100,000 barrels per day; US crude oil production now stands at 12.2 million barrels per day.

OPEC officially agreed to extend production curbs by nine months and fully supports a charter to formalize its alliance with non-OPEC producers.

Weekly Recap

Crude Oil Price

Brent, the global benchmark for oil, decreased $3.37 to $63.31 a barrel, reflecting a loss of 5.05% on the week.

WTI crude fell $2.51 to $56.98 a barrel, down 4.22% on the week.

Drilling Activity

Source: BHGE Rotary Rig Count

Total US rig count (including the Gulf of Mexico) stands at 963, down 4. The horizontal rig count stands at 839, down 1. US rig activity continues to show constrained growth for 52 of the last 55 weeks and is 88 rigs below (-8%) last year’s total. US shale operators continue to focus on well productivity (i.e., well completion) and operational efficiency over rig growth. Capital discipline over production growth remains the driller’s impetus. 

US Crude Oil Supply and Demand

Sources: EIA Weekly Update and GCA Analysis

Crude oil inventories decreased 1.1 million barrels from the previous week. The crude stored at Cushing (the main price point for WTI) increased 0.7 million barrels; total stored is 52.5 million barrels (~58% utilization).

US crude oil refinery inputs averaged 17.3 million barrels per day, with refineries at 94.2% of their operating capacity last week. This was 47,000 barrels per day less than the previous week’s average.

US gasoline demand over the past four weeks was at 9.7 million barrels, down 0.1% from a year ago. Total commercial petroleum inventories increased by 2.5 million barrels last week.

US crude net imports averaged 4.6 million barrels per day last week, up by 1,709,000 barrels per day from the previous week. Over the past four weeks, crude oil net imports averaged 4 million barrels per day, 33.3% less than the same four-week period last year.

US crude imports averaged 7.6 million barrels per day last week, up by 929,000 barrels per day from the previous week. Over the past four weeks, crude oil imports averaged 7.3 million barrels per day, 13.1% less than the same four-week period last year.

   

Authors

July 3, 2019

P. Kevin Galvin

Facilities/Cost Engineer - kevin.galvin@gaffney-cline.com

Signup to receive our latest articles

We're here to help