US crude output drops slightly in July: EIA

OREANDA-NEWS. October 03, 2016. US crude output fell by just 0.2pc in July compared to the previous month signaling that a downward production trend could be slowing.

Domestic output in July fell by 20,000 b/d, to about 8.68mn b/d, according to new data from the US Energy Information Administration (EIA).

July output in Texas, the top producing state, fell by 0.3pc to about 3.16mn b/d. Production in New Mexico eased by 0.5pc to 392,000 b/d.

Output in North Dakota, home of the bulk of the Bakken shale, rose by 0.4pc to remain above 1mn b/d, according to the EIA data, which is based on a methodology which includes a direct survey of oil producers in 15 states.

State officials in North Dakota on 16 September reported a similar modest rise in July with production averaging about 1.03mn b/d, as operators completed more wells. But they also said the July uptick does not represent an upward trend, and that output in the state should fall below 1mn b/d by the end of the year.

Federal offshore Gulf of Mexico crude production increased by 1pc in July to about 1.56mn b/d.

The drop in total US production comes amid a sharp decline in drilling rigs as producers have cut back because of low commodity prices. But the rig count has been moving higher, gaining by 118 since mid-May, according to data from Baker Hughes. It is still down by about 35pc from a year earlier.