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CRUDE OIL WEEKLY UPDATE (week ending 02-09-18)

Summary (EIA):

U.S. crude oil refinery inputs averaged 16.8 million barrels per day during the week ending February 2, 2018, 784,000 barrels per day

more than the previous week’s average. Refineries operated at 92.5% of their operable capacity last week. Gasoline production increased last week, averaging 10.1 million barrels per day. Distillate fuel production increased last week, averaging over 5.1 million barrels per day. U.S. crude oil imports averaged 7.9 million barrels per day last week, down by 538,000 barrels per day from the previous week. Over the last four weeks, crude oil imports averaged 8.1 million barrels per day, 4.5% less than the same four-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) last week averaged 746,000 barrels per day. Distillate fuel imports averaged 313,000 barrels per day last week.

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NATURAL GAS WEEKLY UPDATE (week ending 02-09-18)

In the News (EIA):

 

U.S. natural gas prices to remain low despite increasing exports, according to AEO2018:

EIA’s Annual Energy Outlook 2018 (AEO2018), released on February 6, projects U.S. dry natural gas production to generally increase through 2050 in all cases. In the Reference case, production over the projection period (2018–2050) is expected to average 2.8 trillion cubic feet (Tcf) per year higher than levels projected in a similar case in last year’s AEO (AEO2017). An increase in lower-cost resources in the Appalachian and Permian basins in the AEO2018 results in higher production levels at lower prices. In the AEO2018 Reference case, the Henry Hub spot price is projected to average 68¢ (in 2017 dollars) per million British thermal units (MMBtu) less than in a similar AEO2017 case. In addition, in all AEO2018 cases except the Low Oil and Gas Resource and Technology case, Henry Hub spot prices are projected to remain lower than $6.00/MMBtu (in 2017 dollars) through 2050.

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CRUDE OIL WEEKLY UPDATE (week ending 02-03-18)

Summary (EIA):

U.S. crude oil refinery inputs averaged 16.0 million barrels per day during the week ending January 26, 2018, 470,000 barrels per day less than the previous week’s average. Refineries operated at 88.1% of their operable capacity last week. Gasoline production increased last week, averaging 9.6 million barrels per day. Distillate fuel production decreased last week, averaging 4.6 million barrels per day. U.S. crude oil imports averaged about 8.4 million barrels per day last week, up by 380,000 barrels per day from the previous week. Over the last four weeks, crude oil imports averaged 8.0 million barrels per day, 4.3% less than the same four-week period last year.

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NATURAL GAS WEEKLY UPDATE (week ending 02-03-18)

In the News (EIA):

 

Proposed natural gas plant liquids pipeline from North Dakota supports increased production of natural gas in the Bakken:

In January 2018, OneOK Inc. announced plans to build the Elk Creek Pipeline, a new 900-mile, 240,000 barrels per day (b/d) pipeline to transport Bakken natural gas plant liquids (NGPL) from eastern Montana to Bushton, Kansas. Bushton and nearby Conway, Kansas, serve as a mid-continent NGPL hub with significant infrastructure to store, fractionate, and pipe NGPL to the consuming regions of the Midwest or to the petrochemical and export facilities along the Gulf Coast. Once complete in 2019, the pipeline will allow for more natural gas production in the Bakken region, reduce natural gas flaring, and support higher recovery of high-value NGPL. Natural gas production in the Bakken in North Dakota is experiencing a resurgence (after a period of slow to stagnant growth in 2015 and 2016) as a result of strong growth in crude oil production and higher output of natural gas per barrel of oil produced in 2017.

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CRUDE OIL WEEKLY UPDATE (week ending 02-02-18)

Summary (EIA):

U.S. crude oil refinery inputs averaged 16.5 million barrels per day during the week ending January 19, 2018, 392,000 barrels per day less than the previous week’s average. Refineries operated at 90.9% of their operable capacity last week. Gasoline production decreased last week, averaging about 9.4 million barrels per day. Distillate fuel production decreased last week, averaging over 4.8 million barrels per day. U.S. crude oil imports averaged over 8.0 million barrels per day last week, up by 91,000 barrels per day from the previous week. Over the last four weeks, crude oil imports averaged 7.9 million barrels per day, 2.5% less than the same four-week period last year. Total motor gasoline imports (including both finished gasoline and gasoline blending components) last week averaged 575,000 barrels per day.

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NATURAL GAS WEEKLY UPDATE (week ending 02-02-18)

In the News (EIA):

 

Record Ohio gas production spurs new natural gas processing and generation facilities:

In October 2017, Ohio’s natural gas production reached a new high of 5.5 billion cubic feet per day (Bcf/d), doubling its May 2015 values. Most of Ohio’s natural gas production growth has come from the development of the Utica shale play, and Ohio currently represents 6% of total U.S. production. As the state’s natural gas production expands, Ohio’s natural gas processing capacity and natural gas-fired electric generation capacity have grown as well. With additional projects scheduled to come online in the coming years, growth in capacity for making use of Ohio’s natural gas and its products is expected to continue. At the end of 2017, Ohio had about 4.2 Bcf/d of natural gas processing capacity, up from nearly 3.4 Bcf/d in 2014. According to data from IHS and Bentek Energy, two projects are schedule to come online in 2018 and will add an additional 0.4 Bcf/d to Ohio’s natural gas processing capacity. Both projects have capacities of 0.2 Bcf/d, one being developed by MarkWest Energy Partners and Energy and Minerals Group and the other being developed by Utica East Ohio Midstream LLC. Currently, most of Ohio’s electricity is generated with coal and natural gas. As of October 2017, coal accounted for 16,273 megawatts (MW) (50%) of nameplate electric generation capacity in Ohio, while natural gas provided 12,121 MW (37%).

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CRUDE OIL WEEKLY UPDATE (week ending 01-26-18)

Summary (EIA):

U.S. crude oil refinery inputs averaged 16.9 million barrels per day during the week ending January 12, 2018, 448,000 barrels per day less than the previous week’s average. Refineries operated at 93.0% of their operable capacity last week. Gasoline production increased last week, averaging over 9.7 million barrels per day. Distillate fuel production decreased last week, averaging 5.1 million barrels per day. U.S. crude oil imports averaged about 8.0 million barrels per day last week, up by 292,000 barrels per day from the previous week. Over the last four weeks, crude oil imports averaged 7.9 million barrels per day, 3.7% less than the same four-week period last year.

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NATURAL GAS WEEKLY UPDATE (week ending 01-26-18)

In the News (EIA):

 

EIA estimates that December 2017 U.S. natural gas production set a new record:

EIA’s Short-Term Energy Outlook (STEO), released January 9, 2018, estimates that U.S. dry natural gas production averaged a record-high 78.1 billion cubic feet per day (Bcf/d) during December 2017, topping the previous estimated record set the month before when dry U.S. production averaged 77.3 Bcf/d. STEO forecasts that dry U.S. natural gas production will average 73.6 Bcf/d in 2017, or 0.7 Bcf/d (1%) higher than 2016 average production of 72.9 Bcf/d. STEO’s forecast 2017 production is still lower than the record annual average U.S. natural gas production of 74.2 Bcf/d in 2015. Before November 2017, the record monthly dry natural gas production occurred in April 2015, averaging 75.2 Bcf/d. Average monthly production fell by more than 4.0 Bcf/d from April 2015 to December 2016. However, STEO estimates 11 out of 12 months in 2017 had month-on-month increases in natural gas production, culminating in the record levels seen in November and December. Several factors supported higher levels of dry natural gas production in 2017.

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CRUDE OIL WEEKLY UPDATE (week ending 01-05-18)

Summary (EIA):

U.S. crude oil refinery inputs averaged 17.6 million barrels per day during the week ending December 29, 2017, 210,000 barrels per day more than the previous week’s average. Refineries operated at 96.7% of their operable capacity last week. Gasoline production decreased last week, averaging 9.7 million barrels per day. Distillate fuel production increased last week, averaging 5.6 million barrels per day. U.S. crude oil imports averaged about 8.0 million barrels per day last week, down by 27,000 barrels per day from the previous week.

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NATURAL GAS WEEKLY UPDATE (week ending 01-05-18)

In the News (EIA):

Below normal temperatures last week increased natural gas consumption:

Between December 24, 2017, and January 3, 2018, daily temperatures in the Lower 48 states averaged 27° Fahrenheit (F), which was 9°F lower than the 30-year (1981-2010) average for the same period. Daily temperatures reached a maximum departure from normal of 18°F below normal on January 1, 2018. By comparison, in the winter 2013-14, which had very cold temperatures as a result of several polar vortexes, the national average maximum departure from normal was 16°F below normal on January 7, 2014. National Oceanic and Atmospheric Administration forecasts the colder-than-normal weather to persist through January 7, 2018.

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