Venezuelan crude oil production falls to lowest level since January 2003 (4/24/2019)

In March 2019, Venezuela's crude oil production (excluding condensate) averaged 840,000 barrels per day (b/d), down from 1.1 million b/d in February, according to estimates in the U.S. Energy Information Administration's (EIA) April 2019 Short-Term Energy Outlook. This average is the lowest level since January 2003, when a nationwide strike and civil unrest largely brought Venezuela's state oil company, Petróleos de Venezuela, S.A.'s (PdVSA), operations to a halt. Widespread power outages, mismanagement of the country's oil industry, and U.S. sanctions directed at Venezuela's energy sector and PdVSA have all contributed to the recent declines. Venezuela's production decreased by an average of 33,000 b/d each month in 2018, and the rate of decline accelerated to an average of over 135,000 b/d per month in the first quarter of 2019. The number of active oil rigs—an indicator of future oil production—also fell from nearly 70 rigs in the first quarter of 2016 to 24 rigs in the first quarter of 2019. The declines in Venezuelan production will have limited effects on the United States, as U.S. imports of Venezuelan crude oil have decreased over the last several years, with average 2018 imports the lowest since 1989. However, there may be upward pressure on the prices of other crude oils imported into the United States. ... More »

Despite crude oil price declines in the fourth quarter, 2018 was the most profitable year for U.S. oil producers since 2013 (4/17/2019)

Net income for 43 U.S. oil producers reached a five-year high in 2018, totaling $28 billion. Based on this metric, 2018 was the most profitable year for these U.S. oil producers since 2013, despite average West Texas Intermediate (WTI) crude oil prices that were $33 dollars per barrel (b) lower in 2018 than in 2013, as well as an approximate 40% within-quarter decline in prices in the fourth quarter. Lower production costs per barrel of oil equivalent (BOE) and increased production levels contributed to the highest return on equity—defined as the $28 billion in net income generated as a share of average shareholder equity—for the fourth quarter of 2018 than any quarter in the 2013–18 period. As a result of higher net income, more companies have been funding investments through cash from operating activities, meaning that these producers are relying less on outside sources of capital for new exploration and development. ... More »

Summer 2019 gasoline prices forecast to be lower than last summer (4/10/2019)

In the April 2019 update of its Summer Fuels Outlook, a supplement to the Short-Term Energy Outlook (STEO), the U.S. Energy Information Administration (EIA) expects the retail price of regular-grade gasoline will average $2.76 per gallon (gal) during summer 2019 (April through September). This expected average is down from both the 2018 summer average of $2.85/gal and the five-year (2014–18) summer average of $2.74/gal. Forecast retail diesel fuel prices average $3.09/gal this summer, down from an average of $3.22/gal last summer but still higher than the five-year summer average of $2.95/gal. EIA forecasts that gasoline and diesel prices will be lower this summer compared with last year primarily because it expects Brent crude oil prices will be lower than last summer. ... More »

Summer 2019 gasoline prices forecast to be lower than last summer (4/10/2019)

In the April 2019 update of its Summer Fuels Outlook, a supplement to the Short-Term Energy Outlook (STEO), the U.S. Energy Information Administration (EIA) expects the retail price of regular-grade gasoline will average $2.76 per gallon (gal) during summer 2019 (April through September). This expected average is down from both the 2018 summer average of $2.85/gal and the five-year (2014–18) summer average of $2.74/gal. Forecast retail diesel fuel prices average $3.09/gal this summer, down from an average of $3.22/gal last summer but still higher than the five-year summer average of $2.95/gal. EIA forecasts that gasoline and diesel prices will be lower this summer compared with last year primarily because it expects Brent crude oil prices will be lower than last summer. ... More »

Panama Canal expansion increased transits of hydrocarbon gas liquids without much change in other petroleum flows (4/3/2019)

In June 2016, the Panama Canal Authority, the body that operates the Panama Canal, opened a third set of locks that facilitated transit of larger ships, the first such expansion since the canal was completed in 1914. In the years since the canal was expanded, however, the only significant change in petroleum flows through the canal has been the increase of hydrocarbon gas liquids (HGL) from the U.S. Gulf Coast to destinations in Asia. Other petroleum flows through the canal including U.S. Gulf Coast exports of distillate and motor gasoline to destinations on the West Coast of Central and South America have changed little since the expansion. ... More »