John P. Tretvor
Eagle Communications
Kansas regulators reported 93 new drilling notices were issued in May, up from 413 so far this year and 448 through May last year. Barton County recorded five of 10 new drilling notices so far this year. Ellis County A new one has been added for a total of three. The Kansas Corporation Commission reports one new intent. Russell CountyThere have been four cases so far this year. Stafford County has had six cases this year, with two new cases reported in May.
Independent Oil and Gas Services Inc. announced this week that it has Ellis and Russell It is one of 12 counties in western Kansas.
Regulators have approved 40 new drilling sites in Kansas, including: Russell CountyIt's one of 21 on Wichita's west side. 377 new permits have been issued so far this year, up from 529 during the same period a year ago.
Oil and gas activity in Kansas is lagging behind last year, but it's nothing to brag about. Drilling activity is down 34% from last year, a year that saw statewide crude oil production reach an all-time low. The drilling rig count in Kansas is up 7% from a month ago but down 6% from a year ago. The western half of the state saw its drilling rig count increase by two to 19.
Baker Hughes' rotary rig count showed one fewer oil rig and one more gas rig, bringing the total number of active rigs to 600. Oklahoma and New Mexico each lost one rig, while Louisiana added one.
U.S. commercial crude oil inventories fell by 4.2 million barrels per day last week, according to the Energy Information Administration, to stand at 454 million barrels, about 4% below the five-year average.
The government purchased another 500,000 barrels of crude oil last week as part of ongoing efforts to replenish the Strategic Petroleum Reserve. The total volume of the Strategic Reserve exceeded 618 million barrels in October 2021. In response to the invasion of Ukraine and subsequent Russian sanctions, the government sold millions of barrels at more than $95 a barrel. Now, the government is buying it back at less than $80. The Energy Information Administration reports that as of May 24, the total volume of the Strategic Reserve was 369.3 million barrels, up by more than 3.5 million barrels since replenishment efforts resumed in April. This represents a savings of more than $52 million.
The United States is a net exporter of oil, but crude oil imports continue to exceed exports by just under 1.8 million barrels per day. Exports of petroleum products help tip the balance. Crude oil imports averaged just under 6.7 million barrels per day last week. Crude oil exports averaged 4.2 million barrels per day.
A slight increase in Alaska crude oil production was the reason for the slight increase nationwide. The Energy Information Administration reported total production was 13,122,000 barrels per day, 6,000 barrels higher than a week ago. Average production so far this year and average cumulative production are each more than 1 million barrels per day higher than a year ago.
Texas oil and gas regulators are reporting a seasonally steep decline in already below-average crude oil production in February. Crude oil producers in the Lone Star State pumped 131 million barrels per day in February, down 16 million barrels per day from January and down 700,000 barrels from a year ago. January production was already below average due to severe winter weather.
Natural gas production was down 10% from the previous month and 4% from a year ago. The third-largest producer in the state, production in March increased compared to February, but the daily average for March, the busiest month of production, was down 2%.
The North Dakota Department of Mineral Resources reported that crude oil production reached 1.22 million barrels per day. Natural gas production reached an all-time high, and the number of producing oil and gas wells in the state also reached an all-time high.
The United Arab Emirates has made good on a recent promise to refocus on natural gas by buying a stake in a US company for the first time. Abu Dhabi National Oil Company (ADNOC) will buy a 12% stake in a liquefied natural gas export facility in Texas, along with a 20-year supply contract. The announcement did not mention the price or that the administration is currently suspending licences to export liquefied natural gas. ADNOC also recently announced it would buy part of a gas project in the East African country of Mozambique, as well as a chemical plant in Europe. Abu Dhabi joins the US and Saudi Arabia as the latest major oil producer to refocus on natural gas exploration and sales. Saudi Aramco is following through on its announced plans to expand into liquefied natural gas by buying a huge facility in Australia.
