US crude oil production 

The EIA (U.S. Energy Information Administration) estimates that US crude oil production rose by 2,000 bpd (barrels per day) to 9,530,000 bpd between August 18 and 25, 2017. Production rose 1,042,000 bpd, or 12.3%, from the same period in 2016. It has risen for three consecutive weeks to August 25, and has reached the highest level since July 17, 2015.

High production pressured crude oil (USO) (UCO) prices. As a result, US crude oil (RYE) (VDE) futures have fallen 17.4% YTD (year-to-date). Lower crude oil (DIG) (SCO) prices impact oil and gas producers such as Apache (APA), Noble Energy (NBL), Northern Oil & Gas (NOG), and Triangle Petroleum (TPLM).

How Hurricane Harvey May Impact US Crude Oil Production

US crude oil production’s peaks and lows

US crude oil production hit 8.4 MMbpd in July 2016, its lowest level since May 2014. It hit a high of 9.6 MMbpd (million barrels per day) in June 2015. Production rose due to a recovery in crude oil prices, as shown in the chart above. Technological advancements and improving efficiency supported production.

US crude oil production estimates 

US crude oil production could average 9.4 MMbpd in 2017 and 9.9 MMbpd in 2018. Production could hit a record high in 2018. US crude oil production averaged 8.9 MMbpd in 2016.

US crude oil production and Hurricane Harvey 

Hurricane Harvey hit Texas on August 36, 2017, bringing massive rain and flooding. It led to the shutdown of many refineries and oil production units. Goldman Sachs estimates that 1.4 MMbpd, or 15%, of US crude oil production was disrupted due to hurricane Harvey. Whereas the supply outage looks bullish for crude (XES) (IEZ) prices in the short term, high US crude production could weigh on oil prices over the long term. In the next part of this series, we’ll look at US gasoline inventories.

Latest articles

15 Jul

Will Amazon Prime Day 2019 Break 2018's Record?

WRITTEN BY Jitendra Parashar

This year, Amazon extended its Prime Day to 48 hours instead of the 36-hour sale in July 2018, making the 2019 event the longest Prime Day ever.

In a series of tweets on Monday, Trump today weighed in on China’s GDP growth, which came in at a 27-year low.

15 Jul

OrganiGram's Third-Quarter Earnings

WRITTEN BY Adam Jones

On Monday morning, OrganiGram's third-quarter earnings came in as a bit of a let-down. Here's why.

Trump is reportedly planning to increase the content of US-made steel in federal projects, which would be a lifeline for US steel companies.

Huawei is preparing for “extensive layoffs” in the US, which could put the US-China trade deal on the rocks.

With Q2's Netflix earnings just around the corner, here's what you can expect from the online streaming giant and the broader streaming space.