November 27, 2019

November 27, 2019

2nd December 2019

Oil Drilling Activity

Onshore US drilling activity decreased by 1 with a total active count of 788 (Y/Y decrease of 271) rigs; those targeting oil down 3, with the total at 668. Across the three major unconventional oil basins, the oil-rig count was down 2, with Permian down 1, Williston flat and Eagle Ford down 1. 

Source: Baker Hughes Rig Count (November 27, 2019)

US domestic crude output increased 100,000 barrels per day last week; crude production stands at a peak of 12.9 million barrels per day.

Crude inventories rose by 1.6 million barrels.  Record US crude production, which increased to 12.9 million barrels per day, largely drove the stockpile build.

Carbon Management, Natural Gas, Crude Oil posts return December 6, 2019.

Weekly Recap

Drilling Activity

Total US rig count (including the Gulf of Mexico) stands at 802, down 1. The horizontal rig count stands at 701, up 1. US rig activity continues to hold steady and is 277 rigs below (-26%) last year’s total.

US Crude Oil Supply and Demand

Sources: EIA Weekly Update and GCA Analysis

Crude oil inventories increased, a gain of 1.6 million barrels from the previous week. The crude stored at Cushing (main price point for WTI) increased 0.1 million barrels; total stored is 44.1 million barrels (~49% utilization). Total US commercial crude stored stands at 451 million barrels (~58% utilization).

US crude oil refinery inputs averaged 16.3 million barrels per day, with refineries at 89.3% of their operating capacity last week. This was 101,000 barrels per day less than the previous week’s average.

US gasoline demand over the past four weeks was at 9.2 million barrels, up 0.5% from a year ago. Total commercial petroleum inventories increased by 0.1 million barrels last week.

US crude net imports averaged 2.71 million barrels per day last week, down by 236,000 barrels per day from the previous week. Over the past four weeks, crude oil net imports averaged 3.12 million barrels per day, 42.9% less than the same four-week period last year.

Authors

November 27, 2019

P. Kevin Galvin

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

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