API: U.S. petroleum statistics show a robust industry in 1997

U.S. Oil Consumption in 1997 [72,847 bytes]

American Petroleum Institute said the robust U.S. economy drove up demand for petroleum in 1997 by 1.7% from 1996.

Edward Murphy, API statistics director, said an average 18,618,000 b/d of petroleum products were delivered to the U.S. market. Supplies were abundant.

Last year, oil production in the Lower 48 increased slightly-the first rise in 6 years-while production in Alaska continued to decline.

API said there was a significant increase in U.S. inventories during the year, reflecting the greater availability of crude oil on world markets.

U.S. imports of crude oil and petroleum products averaged 9,893,000 b/d last year. U.S. dependence on imports rose to 53.1%, compared with 51.8% in 1996.

Demand for distillates (diesel fuel and home heating oil) grew in 1997, as strong growth in U.S. manufacturing output boosted use of diesel fuel by trucks. At the same time, U.S. heating oil demand declined because of the milder winter temperatures.

U.S. kerosine/jet fuel consumption set a record in 1997, reflecting increased commercial air traffic. Residual fuel oil used by utilities, ships, and industries continued a long slide downward.

Petroleum's share of total U.S. energy use for the year remained at about 40%, and it was the single largest source of energy for the nation. Natural gas was the source of 25% of energy consumed in the U.S. in 1997, and gas demand was about 1% higher for the year.

Supply side

Murphy said, "Perhaps the most interesting changes last year occurred on the supply side of the equation. Most significant was a 4.4% increase in petroleum imports.

"As in the year before, most of this (54% of crude and 60% of product imports) came from Western Hemisphere countries, primarily Mexico, Venezuela, and Canada.

"Most interesting, however, is that this increase in imports was more than double the amount necessary to meet current consumption needs and reflects a significant change in inventory behavior, compared with 1996.

"Late 1995 and 1996 were periods of very tight petroleum supplies, which required that inventories be drawn down to meet current consumer demand."

Murphy said U.S. refiners rebuilt stocks last year, and inventories increased an average of 161,000 b/d, pushing crude oil imports 6.3% higher for the year.

But product imports dropped 2.8%, "resulting in a greater reliance on domestic refiners."

Murphy said higher U.S. petroleum demand for the year was met chiefly through increased output from domestic refineries. Input to crude distillation units jumped 3.3% in 1997, and the utilization rate reached 94.9%, the highest in at least 20 years.

Fuels breakout

API said that 1997 U.S. gasoline deliveries averaged 8,014,000 b/d, up 1.6% for the year. In December, they were 8,096,000 b/d, up 3.9% compared with the same month in 1996.

API explained, "Motorists had more disposable personal income, and retail gasoline prices began declining in August, so that, by the end of the year, they had gone down 14¢/gal."

U.S. distillate deliveries were 3,431,000 b/d in 1997, up 2% from the prior year. In December, they averaged 3,574,000 b/d, up 4.4% compared with the same month a year before.

Kerosine/jet fuel deliveries in the U.S. averaged 1,608,000 b/d for the year, an increase of 2.1%. In December, they were 1,731,000 b/d, up 10%.

U.S. residual fuel oil deliveries were 808,000 b/d for the year, down 4.7% from 1996. In December, they averaged 876,000 b/d, up 0.5%.

U.S. crude oil production averaged 6,376,000 b/d in 1997, a decline of 1.4% for the year. In December, production averaged 6,353,000 b/d, a decline of 2.4% compared with the same month a year earlier.

Natural gas liquids production in 1997 averaged 1,856,000 b/d, up 1.4% from 1996. Last December, it was 1,855,000 b/d, down 1.1%.

API said total U.S. imports of crude and products averaged 9,893,000 b/d for the year, up 4.4%. In December, they were 9,087,000 b/d, down 3.5%.

At the end of 1997, total U.S. stocks of crude oil and petroleum products were 1,000,300,000 bbl, down 2.4% from November and up 6.2% compared with the end of 1996.

Drilling stats

API said U.S. operators completed 26,203 wells last year, up 14% from the 22,951 drilled in 1996.

Gas well completions were up 20% at 10,904, oil wells rose 13% to 9,581, and dry holes climbed 6% to 5,718.

Operators drilled a total of 144,811,1000 ft, up 15% from 125,676,000 ft of hole in 1996.

Exploratory drilling dropped 3% in 1997. In this category, oil wells were down 12% at 438, gas wells were up 5% at 598, and dry holes were down 2% at 2,120.

Development drilling rose 17%. In this category, oil wells were up 14% at 9,143, gas wells up 21% 10,306, and dry holes up 12% at 3,598.