EIA Weekly Petroleum Report -- August 10, 2022

Gasoline demand, link here: yup, makes absolute sense. Look at "gasoline demand" as reported by the EIA for the past three weeks and ask yourself, "how does gasoline demand change that much week over week for three weeks?" If you are able to answer that, it all makes sense. See link. If you are able to answer that, you can also figure out why gasoline decreased in price the past three weeks. All things being equal, if the hypothesis is correct, "gasoline demand" as reported by the EIA should go up next week and the price of gasoline should quite falling.

 

Wow, look at this: US crude oil production -- 12.2 million bpd. To put that in perspective, link here, US crude oil production:

Note: through May, 2022, the US  had seldom produced an average of 12.2 million or more bopd in any one month -- and for the past several months, the US has been releasing on average one million bopd from the SPR. This isn't rocket science.

Weekly petroleum data, link here:

Disclaimer: this is not an investment site.  Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here. Full disclaimer at tabbed link.

All my posts are done quickly: there will be content and typographical errors. If anything on any of my posts is important to you, go to the source. If/when I find typographical / content errors, I will correct them.

Currently I am on the road: my notes will be less frequent, perhaps shorter. I will not get to my e-mail as often and I will not be able to post comments as often or in a timely manner.

Road trip. 

Weekly EIA petroleum report: link here.

• US crude oil inventories increased by 5.5 million bbls;
• US crude oil inventories now stand at 432.0 million bbls; 5% below the five-year average;
• US refiners are operating at 94.3% of their operable capacity;
• US crude oil imports averaged 6.2 million bopd; decreased by 1.2 million bopd from previous week;
• US crude oil imports averaged 6.5 million bopd, 0.9% less than the same four-week period last year;
• US distillate fuel inventories increased by 2.2 million bbls; remain 24% below the five-year average
• Jet fuel supplied was up 11% compared with same four-week period last year
• Comment: compared to last week, this all makes sense.

********************************
Back to the Bakken

Far Side: link here.

WTI: $90.39.

Natural gas: $7.958.

Active rigs: 46.

Thursday, August 11, 2022: 8 for the month, 39 for the quarter, 378 for the year

• None. Six months ago: February, coldest month of the year in North Dakota.

Wednesday, August 10, 2022: 8 for the month, 39 for the quarter, 378 for the year

• 38004, conf, Hess, CA-E Burdick-155-95-2932H-7,
• 37012, conf, CLR, LCU Ralph Federal 5-27H1,

Tuesday, August 9, 2022: 6 for the month, 37 for the quarter, 376 for the year

• 37925, conf, BR, Lone Beaver 1-1-17MTFH, 

RBN Energy: the expansion of Permian gas infrastructure is far from over. 

The build-out of natural gas processing plants in the Permian continues unabated. In just the past few days, four of the largest midstream players in the U.S.’s premier hydrocarbon production area have unveiled plans for a combined 1.3 Bcf/d of new processing capacity, most of it in the gassier Delaware Basin portion of the crude-oil-focused play. And that’s on top of the 11.7 Bcf/d of processing that’s already been added in the Permian over the past four-and-a-half years — and the 2.6 Bcf/d of soon-to-be-finished projects announced previously. That’s quite a run, and still more processing plants may be in the cards — if midstreamers build more takeaway-pipeline capacity. In today’s RBN blog, we discuss recent processing-plant and pipeline developments in West Texas and southeastern New Mexico.

Production of dry natural gas in the Permian is now averaging 15.5 Bcf/d — an amazing thing, really, when you consider that (1) at the start of 2018, the region was producing less than 7 Bcf/d, and (2) the focus of production in the Permian is crude oil, whereas associated gas (natgas and NGLs) has until recently been a byproduct of sorts that producers and their midstream cohorts need to deal with as they continue to expand their activities. Handling all that raw gas has required the development of scores (yes, scores!) of gas processing plants and a number of new or expanded natural gas and NGL pipelines. And oil-focused producers have been willing to pony up for processing because the last thing they want is for their oil production to be stymied because their gas didn’t flow. The infrastructure build-out continued without letup during the COVID era.