Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

U.S. oil and gas output in December pulled back from record highs

Published 02/28/2020, 05:57 PM
Updated 02/28/2020, 05:57 PM
© Reuters. Pump jacks operate at sunset in Midland

NEW YORK (Reuters) - U.S. crude oil and natural gas production pulled back in December from record highs reached a month earlier, according to monthly government data released Friday.

U.S. oil output fell to 12.78 million barrels per day in December from 12.86 million bpd in November, the U.S. Energy Information Administration (EIA) said in its Production Supply Monthly report. The decline was the first pull-back since July.

Output in the Gulf of Mexico fell 47,000 bpd and North Dakota production dropped by 40,000 bpd, according to a separate EIA monthly publication, known as the 914 report. Texas, the top shale producer, saw output rise by 32,000 bpd in the month.

U.S. crude production has soared due to technological advances for production from shale formations. Despite the decline in December, weekly production data from the EIA suggests that crude output has risen in January and February, setting a record of 13 million bpd.

At the same time, fuel demand fell, with both gasoline and distillate demand dropping from the previous year.

Gasoline demand in December dropped about 2.5% from a year earlier, to 8.945 million bpd. This was a steeper decline than the 1% year-on-year drop seen in November. Seven of the months in 2019 saw less gasoline demand than in same months the previous year.

Demand for distillate fuel, which includes diesel and heating oil, fell 3% from the previous year to 3.901 million bpd, compared with a 0.4 percent decline seen in November.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Monthly gross natural gas production in the U.S. Lower 48 states, meanwhile, slipped to 106.8 billion cubic feet per day (bcfd) in December from a record 107.2 bcfd in November, according to the EIA's 914 report.

That 0.4-bcfd decline in Lower 48 gas production was the first decline in seven months.

In Texas, the biggest gas producing state, output increased 0.6% to 29.4 bcfd in December. The state's monthly all-time high was 29.6 bcfd in October 2019.

In Pennsylvania, the second-biggest gas-producing state, output fell 1.9% to 19.5 bcfd in December, down from a record high 19.9 bcfd in November.

Latest comments

When analyzing the very advanced factors, the basic element is that the huge reduction in demand continues. However, OPEC's supply cuts last week do not seem to have much effect. Is the mid recession scheduled to continue in March?
Shale producers ignored over production and hanged them selves, whats what will take in return
Output and production will not matter until you can determine the impact on demand. Unless you turn all the pumps off.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.