U.S. crude oil output declines 8% in first half

July 26, 1999
The American Petroleum Institute reports that, although oil prices have doubled for U.S. producers since the low of $8/bbl last December, the industry's recovery from economic depression has been slow.

The American Petroleum Institute reports that, although oil prices have doubled for U.S. producers since the low of $8/bbl last December, the industry`s recovery from economic depression has been slow.

It said that, despite the fact that New York Mercantile Exchange crude oil prices have been hovering at $20/bbl, the highest in 11/2 years, most rigs are searching for natural gas rather than oil. API said U.S. production fell 5.5% in June to 5.922 million b/d vs. June 1998. For the first 6 months of 1999, it was 8% lower than a year ago. API said this year`s first-half production was the lowest of any 6-month period since 1950.

U.S. oil imports were 8.532 million b/d in June, down 3% from a year ago. First-half imports were up a scant 0.2%.

Oil and products imports fell 3.6% in June to 10.529 million b/d and were off 0.1% for the first half.

Total U.S. petroleum product deliveries (a key demand indicator) were up 2.5% at 19.132 million b/d for the first half but up only 0.4% in June vs. the same month last year.

API said higher retail gasoline prices in the second quarter appear to have slowed gasoline deliveries. They were up 1.5% at 8.678 million b/d for the first half. For June, they were up 1.9% vs. June 1998.

In February, U.S. retail gasoline prices (adjusted for inflation) were the lowest since the 1920s, said API. From January to June, the U.S. average for regular grade rose 21¢/gal, following the lead of rising world oil prices.

API said June kerosine jet fuel deliveries fell 4.8% to 1.533 million b/d. They rose 3.1% during the first half compared with first half 1998. June distillate fuel oil deliveries fell 5.3%, year on year, to 3.384 million b/d.

API said crude oil stocks were down 1.4% in June at 327.6 million bbl, gasoline stocks fell 2.8% to 215.6 million bbl, and total stocks of crude and products slipped 4.6% to 1.037 billion.

The refinery utilization rate was 96.4% in June.