Posted by OilVoice Press - OilVoice
Data released today from EIA for October largely confirms earlier predictions by Rystad Energy that US oil production could reach 10 million barrels per day at the end of 2017. Strong growth of US onshore production in October was masked by impacts of hurricane Nate on offshore production in the Gulf of Mexico which was down as much as 250 thousand barrels per day below monthly capacity. Still the new data comes out as much as 330 thousand barrels per day higher than previous government predictions, and Rystad Energy expects EIA now would lift predictions for December close to an all-time high. Rystad Energy further predicts US crude oil production could pass the levels of both Saudi Arabia and Russia within a year from now.
US oil imports are shrinking to new lows while oil exports are increasing. The petroleum trade deficit in the US at merely 2.5 million barrels per day when looking at all types of petroleum liquids. This deficit has fallen steeply from a peak of 12.5 million barrels per day in 2007. With WTI Cushing at 60 USD, or 6 dollars below Brent crude, and US refineries running at full speed, the US oil trade gap will continue to shrink as US oil production moves into unknown terrain above 10 million barrels per day.
“We have noted EIA cannot account for 350 kbbld of crude flows in the fourth quarter. Based on our detailed well data, we find that half of those missing barrels comes from under-estimated oil production. EIA's latest estimate for December production is at 9.77 million barrels per day. Following the huge additions now confirmed for October, we expect EIA could raise December data by up to 300 thousand barrels per day. And with production now growing by 25 thousand barrels per day every week, this brings us to exactly 10 million barrels per day at the last day of December, despite biting cold temperatures below -20°C in North Dakota causing some interruption of activities to connect newly fracked wells” says Per Magnus Nysveen, Head of Analysis at Rystad Energy.
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