The US crude oil production was 11 million barrels per day for the week ending September 14, according to data from the EIA (U.S. Energy Information Administration). Crude oil reached this level first in the week ending July 13—the highest ever level. According to the EIA, US crude oil production exceeded Saudi Arabia’s production in February for the first time in more than 20 years. In June and August, US crude oil production exceeded Russia’s production for the first time since 1999.
The above graph shows US, Saudi Arabia, and Russia’s crude oil production since 1994. Higher production supports midstream MLPs involved in crude oil and products transport and storage like Enterprise Products Partners (EPD), Plains All American Pipeline (PAA), Energy Transfer Equity (ETE), and MPLX (MPLX).
The US crude oil exports for the week ending September 14 were 2,367 Mbpd (thousand barrels per day). The exports reached 3,000 Mbpd for the week ending June 22.
The above graph shows the US crude oil production, imports, refinery inputs, exports, and inventory over five years.
As the graph shows, the US crude oil inventory has fallen substantially from its highs in 2017. The crude oil inventory stood at 394.1 million barrels on September 14. A fall in crude oil inventory levels should support oil prices, assuming that other factors don’t change.
Next, we’ll discuss the trends in natural gas production and prices.