API has released its monthly statistical report for June 2018, which highlights that US production of crude oil and NGLs hit is highest level ever. In June, production of crude oil hit 10.7 million bpd and production of natural gas liquids hit 4.2 million bpd.
“Record production US crude oil and natural gas liquids last month highlighted the strength of our nation’s energy renaissance,” said API Chief Economist, Dean Foreman. “US oil production has supplied all of the growth in global oil demand so far this year and helped compensate for production losses in some OPEC nations. With continued increases in drilling activity, the US is poised for further production increases in natural gas and oil. Unfortunately, increasing tariffs on steel and other components that are vital to our industry’s infrastructure and operations have emerged as a key challenge. For the energy renaissance to continue, the US natural gas and oil industry critically needs policies that advance energy infrastructure around the country as well as the access of US energy to global markets.”
Highlights from the June 2018 statistical report include:
- US petroleum demand year-to-date at its strongest since 2007.
- Domestic refineries ran at their highest percent capacity utilisation rate in June (96.6%) since 2005.
- Refinery throughput hit a new record of 18 million bpd.
- With the record refinery throughput, US petroleum inventories held steady as an accumulation of refined product stocks more than offset the drawdown in crude oil stocks.
- Solid economic and energy market fundamentals also underpinned the strongest US petroleum demand since 2007, at 20.6 million bpd.