The U.S. breaks national production record by exceeding 11 million bpd

This is the first time the nation gas recorded this production levels, standing as the number one producer

U.S. oil production hit a new record by surpassing 11 million barrels per day in August. This is the first time the nation gas recorded this production levels, standing as the number one producer, with Russia at a close second.

The U.S. Energy Information Administration (EIA) reported that the country’s production reached 11.3 million bpd, compared with the 11.2 million recorded by Russia, according to this country’s energy ministry.

The United States increased oil extraction from 10.9 million bpd recorded in July to 11.3 million in August. This means that the country added 400,000 bpd in just one month, and it plans to continue with this growth rate.

Overall, this achievement in the U.S. oil sector stems from a production rise in several sites. In fact, several states hit production records in August.

Texas continues to stand as one of the country’s top producers, with 4.6 million bpd, followed by North Dakota with 1.3 million. Other states that hit production records were New Mexico, Oklahoma, Colorado, and West Virginia. Additionally, production in the Federal Offshore Gulf of Mexico also hit a record high of 1.9 million bpd.

U.S. oil production is growing at an unprecedented rate. In Texas, extraction rose to 683,000 barrels from January to August. Meanwhile, production in New Mexico increased by 182,000 bpd in the same period.

Reasons behind the U.S. oil production increase

The EIA states that this record growth surpassed the agency’s expectations, especially thanks to Texas and New Mexico.

Experts assumed that pipeline capacity constraints in the Permian region would dampen production growth in response to the increased differential between the West Texas Intermediate (WTI) crude oil price at Cushing, Oklahoma, and the WTI price at Midland, Texas. In August 2018, this differential had grown to more than $16 per barrel (b), up from $0.43/b in January.

However, the industry increased efficiencies in pipeline utilization and trucking and rail transport in the region. This has allowed crude oil production to continue to grow at a higher rate than EIA expected.

On the other hand, a number of fields in the Gulf of Mexico returned to full production after several months of maintenance and other infrastructure issues that arose from Hurricanes Harvey. As a result, production grew by an average of 130,000 bpd between May and August.

Constant growth

Over the past ten years, there has been a significant and constant growth in U.S. oil production. In that period, extraction went up by more than five million bpd.

The EIA explained that this boost originated from shale oil extraction with fracking techniques.

Currently, shale oil production accounts for 6.2 million bpd or 55 percent of U.S. oil production.

For more information, check Energía16

See also: After 14 years, Argentina to resume natural gas exports to Chile

Image credits: Patrick Hendry

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