API: U.S. Oil Demand Drops, Crude Production Rises in First-Half 2009
July 22, 2009 // Published as a news service by IHS
Petroleum deliveries fell to 18.75 million barrels per day, down nearly 10% from the peak of 20.75 million barrels per day reached in first-half 2005, according to API’s Monthly Statistical Report.
At the same time, however, API reported that U.S. crude oil production in the first half 2009 reached an average 5.29 million barrels per day, the highest level in four years.
Output was up 3.8% from a year ago, reflecting new production from the Gulf of Mexico and increases in North Dakota and other onshore areas.
First-half 2009 jet fuel deliveries fell nearly 13% from a year ago while distillate fuel oil deliveries dropped 8.6% on weak demand for freight transportation. Residual fuel oil deliveries fell by 9.1%, reflecting both fuel substitutions and the economic slowdown.
First-half gasoline deliveries slipped less than 1% from already-depressed levels of a year ago, reaching their lowest level for the period since 2003.
Following two consecutive annual declines in 2007 and 2008, crude oil and product imports dipped by 7.6% in the first half of 2009 due to slumping demand and increased domestic supplies.
Despite a 12% drop in Alaskan production tied to maintenance work on the Trans-Alaskan Pipeline, U.S. crude oil production in June still managed to increase 1.1% from May, the sixth straight year-on-year increase for average monthly production.
June's refinery inputs rose to nearly 15 million barrels per day, the highest level since November. The average utilization rate of U.S. refineries rose a more-than-seasonal two percentage points from May, to 84.5% for June.
This rate was well above the average for all manufacturing industries, which, according to the Federal Reserve Board, stood at 64.7% of capacity for June, said API.
Source: American Petroleum Institute (API).