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U.S. crude oil production hit an all-time high in August, according to new data published by the Energy Information Administration on Tuesday, with production surpassing pre-covid levels.

U.S. field production of crude oil reached 404.6 million barrels during the month of August, new EIA data shows, for an average of 13.05 million barrels per day--squarely breaking the previous record U.S. drillers set in July of 401.73 million barrels.

Increases in production were seen in PADDs 1, 2, 3, and 4, with the largest percentage increase in production seen in PADD 4, which comprises Colorado, Idaho, Montana, Utah, and Wyoming. The largest actual increase was seen in PADD 2, which includes North Dakota, Illinois, and Kentucky, among other states.

Crude production in Texas in August-home to a large portion of the Permian Basin, rose from 173.775 million barrels to 174.562 million barrels.

Compared to this time last year, U.S. production is up by a total of 33 million barrels for the month.

The new record in crude production in the United States comes shortly after U.S. supermajor ExxonMobil spent $60B on purchasing another Permian player, Pioneer Natural Resources, although most oil companies in the United States have chosen fiscal restraint resulting in a slow and steady increase in output versus the no holds barred investment strategies during previous boom cycles.

Despite the record-breaking production levels seen in August, inventories of crude oil in the United States are estimated to be within 3 million barrels of where it began the year.

Analysts and traders have been watching drilling reports in the United States, with the latest count still 350 fewer active rigs than pre-pandemic levels.

WTI and Brent prices were trading flat to slightly up on Tuesday despite escalating tensions in the Middle East between Israel and Hamas. At 12:40 pm ET, WTI was trading flat at $82.31-within $.50 per barrel of the price point a day before Hamas attacked Israel on October 7.

By Julianne Geiger for Oilprice.com

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Julianne Geiger

Julianne Geiger is a veteran editor, writer and researcher for Oilprice.com, and a member of the Creative Professionals Networking Group. More

Comments

  • George Doolittle - 31st Oct 2023 at 3:48pm:
    To pay for these massive energy mergers first XOM now Chevron will require a doubling down big time in upon US energy (both oil and natural gas) exploration and extraction and all of the expense that goes with this so no, not a fan of either merger in the least both from a pro-competition pov but also as a supporter of what both XOM and CVX are doing as well namely performing quite well without need of any of this. BP has also posted very below average numbers given this so called "oil boom" and despite very good execution so there are very high costs associated with trying to expand output as can be seen by their numbers. Should be great news for SLB (maybe Hal) despite a story coming out of billions stolen by Mexico against these two oil drillers. Also downstream is being absolutely *FLOODED* with product now as well mainly though not exclusively from foreign sources as there are simply a stunning amount of barrels for sale upon the US market going on forever now....so unsurprising annihilation of the futures price for oil the past two days. Consumption of product by the end user could be set for a dramatic fall as well as prices for pure BEV start to plunge and consumers flat out ditch the ICE Platform in favor of something far more reliable and better supported for daily driver work. Interesting if minor jump in natural gas futures prices today though. KMI always worth a look at therefore. Zero interest in Chesapeake Energy *EVER* though. USA needs a massive across the board tax cut right now as well if not outright elimination of the IRS given how wholly disinterested Congress is in even passing the idea of a budget let alone protecting the Southern Border. October as did September very much lived up to their bearish nature.
  • Mamdouh Salameh - 31st Oct 2023 at 12:52pm:
    Where is the proof? We only have the word of the US Energy Information Administration (EIA).

    The EIA has been repeatedly accused of hyping about US oil production particularly shale oil for so long that even veterans of the US shale oil revolution have asked the EIA to provide more realistic figures.

    Dr Mamdouh G Salameh
    International Oil Economist
    Global Energy Expert
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