API: U.S. Sets Oil Production Record Due In Part To Increased Pipeline Capacity; U.S. Energy Revolution Exceeds Expectations
The American Petroleum Institute recently released its latest Monthly Statistical Report and API Industry Outlook detailing the continued growth and resiliency of the U.S. natural gas and oil industry. U.S. crude oil production reached a new all-time high of 12.2 million barrels per day (mb/d) in May 2019 driven by a combination of productivity gains and new pipeline capacity that enabled previously drilled but uncompleted wells (DUCs) to begin supplying product to the market.
Highlights from the May 2019 Monthly Statistical Report:
- World-leading U.S. crude oil production of 12.2 million barrels per day (mb/d)
- Texas crude oil production exceeded 5.0 mb/d for the first time
- U.S. natural gas liquids production of 4.8 mb/d, the highest ever for the month of May
- Record U.S. petroleum exports at 8.1 mb/d, the highest ever for the month of May
- U.S. crude oil inventories increased by 10.5 percent over May 2018 levels despite the record exports
Highlights from the API Industry Outlook (Q2 2019):
- Oil markets appeared balanced despite an expected slowdown in the global economic outlook
- Solid productivity has underpinned continued natural gas and oil production growth, and the nationwide production rate has stabilized over the past three years as shale production has grown
- The Permian basin and Bakken formation are poised for continued growth with the expansion of pipeline takeaway capacity, which heightens urgency to expand U.S. crude export capacity
- Global LNG prices dropped to record lows driven by LNG capacity additions in the U.S. and Australia, which should stimulate global LNG demand
- Decreased ethane feedstock prices have supported competitiveness of U.S. petrochemical production that furthers the energy revolution
“The historic milestones in U.S. oil production this quarter underscore the necessity of pipeline infrastructure to continued U.S. energy leadership,” said API Chief Economist Dean Foreman. “With the surge expected to continue, our focus must now shift toward ensuring the necessary infrastructure and logistics are in place to support growth in providing energy to consumers, as well as exports. If current predictions by the U.S. Energy Information Administration and others prove correct, the U.S. will likely push up against the lower bound of existing crude oil export capacity by the end of this year, which creates urgency around building new infrastructure to ensure we don’t miss out on this rare opportunity.”
For more information on the quarterly and monthly reports, please visit our website and check out our blog.
API is the only national trade association representing all facets of the natural gas and oil industry, which supports 10.3 million U.S. jobs and nearly 8 percent of the U.S. economy. API’s more than 600 members include large integrated companies, as well as exploration and production, refining, marketing, pipeline, marine businesses, and service and supply firms. They provide most of the nation’s energy and are backed by a growing grassroots movement of more than 47 million Americans. API was formed in 1919 as a standards-setting organization. In its first 100 years, API has developed more than 700 standards to enhance operational and environmental safety, efficiency and sustainability.
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Source: American Petroleum Institute (API)