U.S. Sets New Record for NGL Production, Ties Record for Oil

(September 10, 2018) — The American Petroleum Institute’s (API) latest monthly statistical report shows the U.S. set a record for the production of natural gas liquids in July, producing 4.4 MMbbld. July also saw the nation tie its record for crude oil output at 10.7 MMbbld.

“With total U.S. liquids fuels production up by more than 2 MMbbld year over year, the United States has been the world’s only substantive source of oil production growth so far in 2018 and more than compensated for production losses in some OPEC nations,” said API chief economist Dean Foreman. “As a result, domestic oil prices have remained lower than international ones, which is good news for consumers. Historically, the more supply that has been brought to the market the better the chances have been for putting downward pressure on prices at the pump.

Meanwhile, U.S. petroleum demand in July sustained its highest level in 11 years, 20.6 MMbbld, which reflected solid economic activity. However, nearly all demand growth between June and July stemmed from residual fueloil and, to a much lesser extent, kerosene jet fuel. For residual fueloil, the change ran contrary to typical seasonal demand and suggested an acceleration in marine shipping activity with escalating U.S. trade disputes.

Among the July highlights: strongest U.S. petroleum demand year to date since 2007; U.S. crude oil prices rose on strong domestic demand; U.S. petroleum net imports rose 450,000 bbld in July; highest refinery throughput for the month at 17.7 MMbbld; U.S. petroleum inventories increased to above the median of the five-year average.

(SOURCE: The Weekly Propane Newsletter, September 10, 2018. Click Subscriptions tab above to subscribe.)