US crude oil production
The EIA (U.S. Energy Information Administration) reported that US crude oil production fell by 30,000 bpd (barrels per day) to 8,458,000 bpd between August 26 and September 2, 2016. Production fell by 0.4% week-over-week and 8% YoY (year-over-year). Slowing US crude oil production could support crude oil prices. For more on crude oil prices, read Part 1 of this series.
Why did US crude oil production fall?
US crude oil production rose by 15,000 bpd to 8,030,000 bpd in the lower 48 states between August 26 and September 2, 2016. Production fell by 45,000 bpd to 428,000 bpd for the same period in Alaska. The decrease in crude oil production in Alaska led to the decline in the overall US crude oil production.
Read Monthly US Crude Oil Production Benefits the Crude Oil Market to learn more about US crude oil’s monthly production.
Peaks and lows in US crude oil production
US crude oil production peaked at 9,600,000 bpd in June 2015. In contrast, it hit a low of 8,428,000 bpd for the week ending July 1, 2016—the lowest level since June 2014.
For more information on US energy companies’ financial challenges, read North American Oil and Gas Producers’ Debt Rose in 2015 and Crude Oil’s Total Cost of Production Impacts Major Oil Producers.
The rollercoaster ride in crude oil prices also impacts funds such as the ProShares UltraShort Bloomberg Crude Oil (SCO), the DB Crude Oil Double Short ETN (DTO), the ProShares Ultra Bloomberg Crude Oil ETF (UCO), the Direxion Daily Energy Bear 3x (ERY), and the PowerShares DWA Energy Momentum (PXI).
In the next part of this series, we’ll take a look at the US crude oil refinery input, crude oil imports, and crude oil production estimates.