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US Crude, Gas Output Highest in Decades

US Crude, Gas Output Highest in DecadesUS Crude, Gas Output Highest in Decades

US crude oil production in October rose to the highest in more than 46 years, while natural gas production leaped to a new record, US Energy Information Administration data showed on Friday.

The production increases in October compared to a year ago come on the heels of higher energy prices, with US crude futures recently touching $60 a barrel for the first time since mid 2015, Reuters reported.

Natural gas futures hit near four-week highs on Friday and were poised for their best weekly gain since July last year on higher demand expectations.

Production was expected to continue rising through 2017 and into 2018, analysts and traders said, driven by rising exports and growing oil demand.

October crude production rose 167,000 barrels per day to 9.64 million bpd, according to EIA’s monthly production report. If the figure is not revised next month, it would be the highest monthly level since May 1971.

September’s oil production figures were revised down by 11,000 bpd to 9.47 million bpd, the EIA added.

In North Dakota, oil output rose by 83,000 bpd in October, while it jumped 206,000 bpd in Texas. Offshore in the US Gulf of Mexico, production declined by 200,000 bpd.

Meanwhile, total US natural gas production broke a record in October, hitting 2.63 billion cubic meters per day, up from 2.6 bcm/d, according to EIA, which tracks data back to 2006.

Total refined oil product exports rose to 3.6 million bpd in October, with gasoline exports rising to 732,000 bpd and distillate fuel exports rising to 1.5 million bpd.

Oil demand for the month rose compared with a year ago, edging up 0.8% or 156,000 bpd to 19.8 million bpd.

Of that, gasoline demand rose 2.8% or 254,000 bpd to 9.3 million bpd compared with last year. Distillate demand slipped 0.5% or 20,000 bpd to nearly 4 million bpd.

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