Tag: Robert Boslego

U.S. Crude Production Gains Slow In October

Posted on by Robert Boslego

The Energy Information Administration reported that October crude production averaged 11.560 million barrels per day (mmbd), up 79,000 b/d from September. This was a slowdown in growth from the spectacular numbers recorded in July and August.

Crude Production

However, the year-over-year gain was still a very impressive 1.850 mmbd. And this number only includes crude oil. Other supplies (liquids) that are part of the petroleum supply add to that. For October, that additional gains is about 600,000 b/d.

Crude Production

The gain was led by a 33,000 b/d increase in New Mexico, a 31,000 b/d rise in North Dakota and a gain of 22,000 b/d in Colorado. Weather factors affected the overall gain, as production fell by another 29,000 b/d in the U.S. Gulf. Continue reading "U.S. Crude Production Gains Slow In October" →

OPEC's Plan To Institutionalize OPEC+ Has Failed

Posted on by Robert Boslego

For over a year, OPEC General Secretary Mohammed Barkindo has been trying to "institutionalize" the OPEC+ arrangement that includes Russia. At the Oil and Money conference in October 2017 in London, Barkindo told reporters. "This platform of 24 countries, now hopefully growing, should be institutionalized."

OPEC+
Source: OPEC

In September, he said, "What we are working on now is to make it [cooperation] more permanent and institutionalize the framework. Our target is to have a longer cooperation framework in place by December when we reconvene in Vienna [for the next OPEC meeting]."

In an interview with TASS on October 22nd, Saudi Energy Minister Khalid Al-Falih explained his view for the long-term agreement he wanted in December: Continue reading "OPEC's Plan To Institutionalize OPEC+ Has Failed" →

World Oil Supply, Demand And Price Outlook, December 2018

Posted on by Robert Boslego

The Energy Information Administration released its Short-Term Energy Outlook for December, and it shows that OECD oil inventories likely bottomed in March at 2.807 billion barrels. It estimated a 10-million barrel gain for November to 2.902 billion. Though it forecasts that stocks will drop in December to 2.894 billion, that is 50 million barrels higher than a year ago.

Throughout 2019, OECD inventories are generally expected to rise, reaching 3.010 billion barrels in November. Its projections end the year with 88 million barrels more than at the end of 2018, glut territory.

oil

OPEC pledged to cut its production by 800,000 b/d from the October level for the first six months of 2019. EIA estimates OPEC production at 32.9 million barrels per day (mmbd), including Qatar, which will no longer be a member of OPEC in January. EIA’s assume OPEC production for 2019 is 31.8 mmbd, and so that represents a larger 1.1 mmbd drop. Continue reading "World Oil Supply, Demand And Price Outlook, December 2018" →

U.S. Crude Production Shows No Signs Of Bottleneck

Posted on by Robert Boslego

The Energy Information Administration reported that August crude oil production averaged 11.475 million barrels per day (mmbd), up 129,000 b/d from August. The gain was led by a 106,000 b/d increase in Texas, a 64,000 b/d rise in North Dakota and a gain of 24,000 b/d in Mexico. Seasonal factors affected the overall gain, as production fell by 147,000 b/d in the U.S. Gulf and rebounded by 43,000 b/d in Alaska.

permian basin

The EIA-914 Petroleum Supply Monthly (PSM) figure was 438,000 b/d higher than the weekly data reported by EIA in the Weekly Petroleum Supply Report (WPSR), averaged over the month, of 11.037 mmbd. Continue reading "U.S. Crude Production Shows No Signs Of Bottleneck" →

December OPEC Meeting Preview

Posted on by Robert Boslego

When the OPEC-Non-OPEC Joint Ministerial Monitoring Committee (JMMC) convened in Abu Dhabi, United Arab Emirates in mid-November, it reported in a press release:

The Committee reviewed current oil supply and demand fundamentals and noted that 2019 prospects point to higher supply growth than global requirements, taking into account current uncertainties. “The Committee also noted that the dampening of global economic growth prospects, in addition to associated uncertainties, could have repercussions for global oil demand in 2019 – and could lead to widening the gap between supply and demand.”

The figures they were reviewing were later released by OPEC in its November Monthly Oil Market Report. For 2019, they are projecting a decline in the demand for OPEC crude oil of about 1.04 million barrels per day to 31.54 mmbd. OPEC’s October production was estimated at 32.9 mmbd.

saudi energy minister khalid
Continue reading "December OPEC Meeting Preview" →