Friday, December 30, 2016

US Oil Production Growth Stalls for 3rd Week

Perhaps temporary anomalies are to blame for the third week of declining continental US oil production.  The volume declines are not substantial, but they interrupt what was a sharp two-month growth trend that saw output rise from 8.45 million BOPD to 8.8.

This week's decline of 20 thousand barrels per day came on the heels of a 10K and a 1K decline in daily output for the month of December.  Rising rig counts belie the onset of a longer trend, but the potential for other short term confounding effects (winter weather, year end, holidays) may mean that a return to growth (or not) may not be apparent for a few weeks more.

2016 Continental US Oil Production (thousand BOPD):