With U.S. oil production still declining, imports supplied more than 50% of the oil the nation consumed in May, the third month in the last 12 in which imports topped that mark.
The American Petroleum Institute pegs imports of crude oil and petroleum products at 52% of U.S. supply: 8.511 million b/d, up 11.7% from the 7.62 million b/d imported in May 1989. Total deliveries of products averaged 16.271 million b/d, down 1.3% from the 16.488 million b/d recorded a year ago.
In Washington, a group of congressmen cited the rising flow of imports as a reason to head off exports of heavy California crude. But their fellow lawmakers in the House of Representatives rejected that effort.
PRODUCTION SLIDE
U.S. crude production amounted to 7.309 million b/d last month, down 6.1% from 7.782 million b/d in May 1989.
The production decline in the Lower 48 has been about 300,000 b/d in recent months, compared with last year's average of 400,000 b/d.
"The most recent figures add to the evidence that recent increases in well maintenance and drilling have had some effect on production," API said.
Meanwhile, Alaskan production fell 184,000 b/d, more than 9%, somewhat greater than the recent trend of about 6-7%.
API said major maintenance projects will temporarily reduce North Slope production further this summer. The work includes additions to capacity for separating gas and water from crude, as well as overall maintenance.
Five of Prudhoe Bay field's flow stations are scheduled to be taken down, one at a time, for about 2 weeks each.
With each station normally handling about 200-300,000 b/d, the maintenance as planned would cause a dip in the field's production of about 20-25 million bbl during the next several months.
Downtime for general maintenance in Endicott field, which normally produces about 100,000 b/d, also is on the agenda later in the summer, which would add perhaps another 1 million bbl to the dip.
OIL EXPORT ISSUE
Rep. Mel Levine (D-Calif.) and five other congressmen sought to block California heavy crude exports through an amendment to a trade bill.
The issue stems from a Commerce Department recommendation in January that producers be allowed to export 15,000 b/d of such crude, increasing to 25,000 b/d in 3 years, because of soft demand for it (OGJ, Apr. 16, p. 29). Refiners oppose the exports.
President Bush has not acted on the recommendation.
Levine said, "At a time when crude imports meet more than 40% of American demand, to turn around and export part of our domestic supply defies logic.
"Such exports will provide no net benefit to our trade deficit because every barrel we export will have to be directly offset by an imported barrel and because the long term impacts of these exports would result in a loss of domestic refining capacity."
Rep. Phil Sharp (D-ind.), House energy and power subcommittee chairman, argued against the amendment.
Sharp said the surplus crude has no market in California because of its very heavy nature and its sulfur content, which violates the Clean Air Act. "We have to sell it abroad if we have the opportunity," he said.
He argued exports will not hurt California refiners, who are tight on capacity.
Sharp said blocking exports "favors the major international oil companies. It works against the independent producers ... who will be further going out of business unless we allow the Commerce Department to go forward."
Copyright 1990 Oil & Gas Journal. All Rights Reserved.