U.S. monthly crude oil production reaches highest level since 1998
Source: U.S. Energy Information Administration, Petroleum Supply Monthly.
Posted on 12/05/2012 12:16:00 PM PST by thackney
U.S. crude oil production (including lease condensate) averaged almost 6.5 million barrels per day in September 2012, the highest volume in nearly 15 years. The last time the United States produced 6.5 million barrels per day or more of crude oil was in January 1998. Since September 2011, U.S. production has increased by more than 900,000 barrels per day. Most of that increase is due to production from oil-bearing rocks with very low permeability through the use of horizontal drilling combined with hydraulic fracturing. The states with the largest increases are Texas and North Dakota.
From September 2011 to September 2012, Texas production increased by more than 500,000 barrels per day, and North Dakota production increased by more than 250,000 barrels per day. Texas's increase in production is largely from the Eagle Ford formation in South Texas and the Permian Basin in West Texas. North Dakota's increase in oil production comes from the Bakken formation in the Williston Basin. Increased production from smaller-volume producing states, such as Oklahoma, New Mexico, Wyoming, Colorado, and Utah, is also contributing to the rise in domestic crude oil production.
May 1985, the US averaged 9.132 million barrels a day.
Reference: http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MCRFPUS2&f=M
Yet, gas, at least from what I’ve seen is no lower in price than a couple of months ago.
This is impossible, because as I’ve been repeatedly told, we reached PEAK OIL production in (variously):
1960
1970
1980
1990
2000
2010
2020 (Estimated)
Etc.
Drill baby, DRILL......or, Frack baby, Frack.
It’s dropped about $.15/gal since Oct around here.
Two reasons why gasoline doesn’t get cheaper:
Oil is priced based on World Wide supply and demand, and U.S. production doesn’t influence WW supply very much.
Gas in the U.S. is segregated into regional specific blends that cannot compete with one another, effectively creating a few oligopolies (a few sellers per market) that can limit competition and keep prices higher than would occur in a nation wide market.
Gas in Washington State dropped from around $4.25 to $3.25 in the last 6 months.
The United States has not built a new Oil Refinery since 1979.
What good is a glut of crude oil if you don’t have a refinery that can turn it in to useful products like gasoline?
The price of gasoline is governed as much by the refiners as it is by the spot price of crude oil.
We need a congress and president that will reign in the out of control EPA.
But that is unlikely to happen.
I’m getting google alerts on oil shale and it appears there is an “oil rush” going on. Interesting to watch.
We still import more than we produce ourselves, even with this increase. We have plenty of refining capability, but most of it is from outside our borders.
http://www.eia.gov/dnav/pet/pet_move_wkly_dc_NUS-Z00_mbblpd_w.htm
That doesn’t free us up for much economic savings while the world oil price remains relatively strong.
The US has more refinery capacity than we use ourselves.
We haven’t built a new refinery, but we spent the last couple decades or so expanding and upgrading the ones we have.
There is currently 17.4 million barrels a day refining capacity in the US.
Refinery Utilization and Capacity
http://www.eia.gov/dnav/pet/pet_pnp_unc_dcu_nus_m.htm
Our current refined product usage is between 16~17 million barrels a day, trending lower lately.
U.S. Product Supplied of Finished Petroleum Products
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MTPUPUS2&f=M
You may often here reports of a higher number for US consumption, 18~19 for petroleum products, but that number includes natural gas liquids, biodiesel, ethanol, etc.
See breakdown at:
Petroleum Product Supplied
http://www.eia.gov/dnav/pet/pet_cons_psup_dc_nus_mbblpd_m.htm
$3.10 per gallon here in the Ozarks. Sam’s Club. But with all that production and so weak and economy, one would think it should be lower still.
But that is unlikely to happen.
A very common sense approach for the GOP to take with the so-called 'fiscal cliff' negotiations would be to tie regulatory reform in with *any* discussion of tax increases. It should be: 'Tax the so-called rich? Fine. Give us Keystone pipeline, ANWR, outer continental shelf, and cancel plans to lock up millions of acres on BLM land from oil and gas exploration. Then maybe we'll talk.'
But as we all know, the geldings in the GOP House leadership are too chickens**t to go there.
Add 1920 and 1930.
The irony being that increased oil and gas production might prop up his economy until 2015 and keep his supporters thinking there is light at the end of the tunnel.
Lots more smaller regional refineries would put gas prices back where they belong, well under $2.00/gallon. Ain't gonna happen. Your President and the people who like him don't think you should be (a) driving, and (b) if you're driving, it should be a $40,000 Prius or Volt.
BTW, if you work in the private sector, you can't afford to drive and eat. Pick one. Welcome to the new East Germany.
Lots more smaller regional refineries would put gas prices back where they belong, well under $2.00/gallon. Ain't gonna happen. Your President and the people who like him don't think you should be (a) driving, and (b) if you're driving, it should be a $40,000 Prius or Volt.
BTW, if you work in the private sector, you can't afford to drive and eat. Pick one. Welcome to the new East Germany.
Lots more smaller regional refineries would put gas prices back where they belong, well under $2.00/gallon. Ain't gonna happen. Your President and the people who like him don't think you should be (a) driving, and (b) if you're driving, it should be a $40,000 Prius or Volt.
BTW, if you work in the private sector, you can't afford to drive and eat. Pick one. Welcome to the new East Germany.
I don’t believe it.
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