US petroleum demand surges to seven-year high

According to the American Petroleum Institute's (API) November monthly statistics report, total US petroleum deliveries increased 1.9% from November 2013 to average 19.9 MMbpd, the highest level for the month in seven years. 

“It has been several years since we’ve seen this level of demand in November,” said API chief economist John Felmy. “The economy overall appeared to be in good shape last month, and production of crude, natural gas and refined products all remained quite strong.”

Gasoline demand also grew by 1.9% from November 2013 to average 9.1 MMbpd. These were the highest deliveries for the month since 2007. Distillate deliveries were the highest in eight months, increasing by 1.2% above the prior year to 3.9 MMbpd. Demand also rose over the same period for jet fuel (3.8%) and “other oils” (7.1%) while residual fuel deliveries fell 26% to set a new record low for the month.

Crude production jumped 14.9% from last year to its highest November output since 1973. The production level of 9.1 MMbpd marked the first time above 9 MMbpd since March 1986. The Bakken, the Eagle Ford and the Permian regions posted record levels of production last month, averaging 1.2 MMbpd, 1.6 MMbpd, and nearly 1.8 MMbpd, respectively.

Natural gas liquids (NGL) production, a co-product of natural gas production, reached its highest output on record at nearly 3.2 MMbpd, an increase of 15.3% from last year. Production of natural gas in the Marcellus region, the largest natural gas producing region, reached a record high of nearly 15.9 Bcfd in November, up 17.9% from last year and was up 74% from November 2012.

According to the latest reports from Baker-Hughes, the number of oil and gas rigs in the US in November was 1,925, the same from October, but was up 169 counts from November 2013. This was the second highest count since July 2012.

Total petroleum imports last month were down by 5.2% from November 2013 to average just below 8.9 MMbpd. This was the second lowest level since February 1996. Crude imports rose slightly by 0.7% from last year to average nearly 7.5 MMbpd – the second lowest level for the month since 1996. Imports of refined products dropped 27.3% over the same period to the lowest level since May 1995 at 1.4 MMbpd.

Production of gasoline gained 0.6% from the prior year to average a new high for the month of November at 9.5 MMbpd. At nearly 4.9 MMbpd, distillate production rose by 4.9% from October but was down by 3.7% from November 2013. Year to date production of both products was the highest on record.

November records were also set in refinery gross inputs and exports of refined products. Gross inputs grew 0.9% from last year to average 16.3 MMbpd while exports were up 5.5% to average 4.2 MMbpd.

With several refineries back up from their scheduled turnaround, the refinery capacity utilization rate averaged 91.4% in November. This was up 2.6% from October, up 0.8% from the year ago levels, and the highest November rate in 10 years. API’s latest refinery operable capacity was 17.805 MMbpd.

Crude oil stocks ended the month at 374.9 MMbpd, up 0.3% from the last year. These were the second highest November inventories in 84 years, since 1930. Stocks of motor gasoline fell 3.9% from last year to their lowest inventories in six years at 208.3 million barrels. Stocks of distillate, jet fuel and “other oils” all fell from year ago levels.