Carpe Diem

From today’s report on industrial production: Crude oil output reached a 20-year high in January

crudeThe Federal Reserve reported today on industrial production for January,  with the following commentary:

“Industrial production edged down 0.1% in January after rising 0.4% in December. In January, manufacturing output decreased 0.4% following upwardly revised gains of 1.1% in December and 1.7% in November. At 98.6 percent of its 2007 average, total industrial production in January was 2.1 percent above its level of a year earlier.

The largest declines were in the output of motor vehicles and parts, which dropped 3.2%, and in the output of primary metals, which fell 2.6%; each of those indexes had advanced strongly in both November and December.”

MP: One of the strongest growth sectors in January was the production of crude oil, which rose last month to the highest level since December 1992, more than twenty years ago (see chart above, data available here). Compared to a year earlier, crude oil production increased by more than 14%, which was the fifth straight month that crude oil output increased by 14% or more. While other industrial sectors of the economy slowed in January, crude oil production continues its phenomenal upward trajectory as the energy sector remains the “crown jewel of the disappointing economic recovery,” to paraphrase Washington Post columnist Robert Samuelson.

4 thoughts on “From today’s report on industrial production: Crude oil output reached a 20-year high in January

  1. Obama’s oil policy is being very successful, especially compared to Republican President’s policies that produced falling oil output.

    For years oil companies realized that their return on investment from hiring politicians was greater than they could get by actually drilling for oil. Isn’t it great that Obama changed that so that the oil companies had to do something radical like actually drilling for oil.

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