Weekly US crude oil production
The EIA (U.S. Energy Information Administration) estimates that US crude oil output rose by 100,000 bpd (barrels per day) to 11,000,000 bpd last week, a record high. It was 1,571,000 bpd (~16.6%) higher YoY (year-over-year).
The EIA released its US crude oil output data yesterday, and active WTI crude oil prices rose 1%. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) rose 0.26%.
Ultra Petroleum (UPL), Resolute Energy (REN), HighPoint Resources (HPR), and Delek US Holdings (DK), XOP’s top percentage gainers yesterday, rose 6.8%, 2.8%, 2.5%, and 2.2%, respectively. The stocks account for 3.4% of XOP.
Crude oil production in the Permian region
The EIA estimates that Permian crude oil production will average 3.4 million bpd in 2018 and 3.9 million bpd in 2019. It averaged ~2.6 million bpd in 2017.
The Permian’s geology, improving technology, and operational efficiency have made it one of the more economically favorable US oil production regions. However, low pipeline takeaway capacity and trade wars could limit oil demand, US crude oil prices, and production activity.
US crude oil production estimates
The EIA expects US crude oil output to average 10,790,000 bpd this year and 11,800,000 bpd in 2019, and US crude oil production to average 12.02 million bpd during the fourth quarter of 2019. If these projections are achieved, the United States would become the world’s largest oil producer.