Carpe Diem

Energy chart of the day: Oil production during the first week of December is the highest in almost 19 years

The amount of crude oil produced in the U.S. increased to 6.852 million barrels per day during the first week of December according to data released today by the Department of Energy.  That level of production is an increase of almost 17% from the same week last year, and is the highest amount of oil produced in the U.S. in any week since late January 1994, almost 19 years ago.

4 thoughts on “Energy chart of the day: Oil production during the first week of December is the highest in almost 19 years

  1. What is incredible about the chart is the direction since 2008, and the latest surge.

    This is what I expected back in 2008. Oil at more than $80 a barrel produces gushers of new fuel, while demand wanes.

    This, even with most of the world’s easy crude under “thug nations ” such as Russia, Nigeria, Mexico, Venezuela, Libya, Saudi Arabia, Iran, Iraq etc.

    Despite the cartel, despite the morris putrid nature of oil nations, supply is surging.

    Could see another price bust soon.

    After the oil price run-up of 1979, prices busted for nearly 20 nears.

    Replay?

    Let free markets handle commodities “shortages.”

    Or any “shortage” for that matter.

  2. I was wondering about this the other day, who is benefitting from this?

    I know there is a shale revolution and a bakken oil boom, but who are the individual corporations that are profitting from this?

    I was guessing sand companies and oil companies, but who else? and what individual companies? Though what is good for one is good for all in this case, itd be interesting to maybe monitor individual stock tickers related to this market and compare to past months.

    • The same fracking/directional drilling technologies focused on oil and natural gas are also combining to yield critical and less costly essential feedstocks for the chemical, plastics, fertilizer, rubber, drugs, textiles industries, etc.–butane, propane ethane, ethylene, methane, etc. are all contributing to a renaissance in these industries. And lets not forget the contribution to electrical utilities that supply power to just about every manufacturer in the USA. This touches every manufacturer where there is a light bulb, air, conditioner, heat source or assembly line–that’s everybody. Again, thus the emerging manufacturing renaissance in the USA.

      Specific companies are too numerous to list here. One conspicuous example is Dow which has been hurt and constrained in years past by high-priced NG. With the new abundance, Dow has since reversed its position and is currently building and expanding facilities (sales, jobs, incomes) here in the USA that are dependent upon inexpensive and abundant supplies of NG–thus the renaissance that is growing and expanding. And since NG is cheap here in the USA compared to elsewhere and a lot less expensive than in the EU (less than half their price), expect foreign expansions and more EU manufacturing right here in the USA. Again, that spells renaissance.

      Looking out a few years, you can expect to see a very significant portion of our fleet of about 8 million 18-wheelers converted over to NG based (LNG) power sources. Caterpillar Tractor, an important diesel supplier, recently announced massive plans to be a big player in this emerging source of power. Cummins Engine also produces LNG powered engines.

      Some form of NG will increasing touch everything–its the power source of the future. Its the biggest economic game changer since sliced-bread and Twinkies–maybe even bigger.

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