API Releases Monthly Statistical Report for November 2005

December 20, 2005

Despite the advances in refining operations over the past several months, API said, 1.3 million barrels a day of refining capacity remained offline or was running at reduced rates at the end of November. This November's production of most major products was still down compared with November 2004. However, gasoline output turned positive for the first month since February, rising 0.4% from a year ago, API said.

November's domestic crude production also continued to recover from September's low caused by the impact of the hurricanes. However, production, at 4.6 million barrels per day, still fell short of year-ago levels by nearly 15%, API said. More than 100 million barrels of crude and 525 billion cubic feet of natural gas have gone unproduced from June through November because of this year's storms.

Total refined petroleum product deliveries, a key measure of demand, fell 2.8% in November compared with one year earlier, API said.

With sharply falling prices, deliveries of gasoline rose 1.4% last month compared with November 2004, reversing the declines of recent months, API said. Total petroleum deliveries, however, continued to show year-to-year declines.

Deliveries of residual fuel oil also rose by nearly 17%, API said. Residual fuel oil continues to be an alternative to expensive natural gas for industrial and electric utility uses with the capability to switch fuels. Deliveries of other major refined products declined in November. Distillate fuel deliveries fell 4.4%, despite an increase for low-sulfur diesel, the type required for on-highway use. Jet fuel deliveries continued to show year-to-year declines with a drop of nearly 18%.

Distillate imports, especially diesel fuel, surged in November, API reported. Imports of low-sulfur distillate jumped more than 50% from the previous month to a record level of 244 thousand barrels per day, API said. Total distillate imports were at their highest level since March 2004. November's gasoline imports (including blending components) continued at well more than 1 million barrels per day for the seventh month, up nearly 37% from last November. Combined with strong residual imports, as well, total product imports in November reached a new high of more than 3.8 million barrels per day. The gain for refined petroleum products more than offset the 1.8% decline in crude imports, putting total petroleum imports 3.6% higher than last November.

Distillate inventories, or stocks, in November rose nearly 11 million barrels to 136 million barrels, API said. That is more than double the average rate of the previous five Novembers. Distillate fuel inventories were 5.6% above the five-year average for November. Gasoline inventories rose 2% compared with October, but ended November 3% lower than for November 2004. Crude oil inventories held nearly steady compared with October at 324 million barrels, but were more than 11% above the five-year average.

Source: American Petroleum Institute (API).