The American Petroleum Institute has released its latest Monthly Statistical Report and API Industry Outlook detailing the continued growth and resiliency of the US natural gas and oil industry. US crude oil production reached a new all-time high of 12.2 million bpd in May 2019 driven by a combination of productivity gains and new pipeline capacity that enabled previously drilled but uncompleted wells (DUCs) to begin supplying product to the market.
Highlights from the May 2019 monthly statistical report:
- US crude oil production of 12.2 million bpd.
- Texas crude oil production exceeded 5.0 million bpd for the first time.
- US natural gas liquids production of 4.8 million bpd, the highest ever for the month of May.
- Record US petroleum exports at 8.1 million bpd, the highest ever for the month of May.
- US crude oil inventories increased by 10.5% over May 2018 levels despite the record exports.
Highlights from the API Industry Outlook (2Q19):
- Oil markets appeared balanced despite an expected slowdown in the global economic outlook.
- Solid productivity has underpinned continued natural gas and oil production growth, and the nationwide production rate has stabilised over the past three years as shale production has grown.
- The Permian basin and Bakken formation are poised for continued growth with the expansion of pipeline takeaway capacity, which heightens urgency to expand US crude export capacity.
- Global LNG prices dropped to record lows driven by LNG capacity additions in the US and Australia, which should stimulate global LNG demand.
- Decreased ethane feedstock prices have supported competitiveness of US petrochemical production that furthers the energy revolution.
“The historic milestones in US oil production this quarter underscore the necessity of pipeline infrastructure to continued US energy leadership,” said API Chief Economist Dean Foreman. “With the surge expected to continue, our focus must now shift toward ensuring the necessary infrastructure and logistics are in place to support growth in providing energy to consumers, as well as exports. If current predictions by the US Energy Information Administration and others prove correct, the US will likely push up against the lower bound of existing crude oil export capacity by the end of this year, which creates urgency around building new infrastructure to ensure we don’t miss out on this rare opportunity.”
Read the article online at: https://www.worldpipelines.com/business-news/21062019/api-production-records-in-the-us-oil-and-gas-industry/