OPEC's Top Crude Oil Producers, 2011-May 2012

by David Rachovich

OPEC Crude Oil Production March 2012-May 2012 (thousand barrels per day)

Rank  2012	Country	Full Year 2011*[UPD]	Mar '12*	Apr '12*	May '12* (May '12**)
1.	Saudi Arabia	9,268	9,832	9,877	9,917 (9,807)
2.	Iran	3,621	3,313	3,210	3,138 (3,760)
3.	Iraq	2,666	2,807	2,994	2,952 (2,915)
4.	Kuwait	2,538	2,785	2,789	2,858 (3,000)
5.	UAE	2,517	2,578	2,587	2,578 (2,383)
6.	Venezuela	2,380	2,368	2,362	2,378 (2,826)
7.	Nigeria	2,111	2,085	2,175	2,126 (..)
8.	Angola	1,664	1,722	1,769	1,730 (1,762)
9.	Libya	462	1,340	1,394	1,452 (1,552)
10.	Algeria	1,240	1,222	1,217	1,197 (1,206)
11.	Qatar	794	789	778	757 (732)
12.	Ecuador	490	489	489	499 (498)
Total OPEC***		29,751	31,329	31,640	31,582 (..)

 
*Based on secondary sources.

**Based on direct communication.

***Totals may not add up due to independent rounding.

Source: OPEC, Monthly Oil Market Report (MOMR), June 2012, p. 45, Tables 5.4 and 5.5 here.

(Update: Iranian crude oil production - 2,963,000 barrels per day - fell below that of Iraq - 2,984,000 b/d - in June 2012, according to the OPEC, Monthly Oil Market Report (MOMR), July 2012, p. 49, Table 5.4, citing secondary sources. Please compare this to the International Energy Agency/IEA's argument: "Symbolically, Iranian crude output [- 2,900,000 b/d -] fell below that of regional rival Iraq [- 3,020,000 b/d -] in July [2012] for the first time since the late 1980s [my emphasis -- D.R.]."---IEA, Oil Market Report (OMR), August 10, 2012, pp. 15-16 Update 2: Iraq's oil exports averaged 2.51 million barrels per day in August [2012]. The exports lift Iraq’s crude production to 3.18 million b/d for the month, similar to July's levels, and are a further indication that Iraq is solidifying its position as Opec’s second-largest producer after Saudi Arabia---please see EI, Energy Intelligence Briefing, Aug 31, 2012. Also, please see "OPEC's Top Crude Oil Producers, 2011-Jan. 2012," "OPEC's Top Crude Oil Producers, 2010-Jan. 2011," and "World's Top 23 Crude Oil Producers (including OPEC production), Nov 2011 - EIA," -- D.R.)

U.S. Crude Oil Production in First Quarter of 2012 Highest in 14 Years

EIA, Today in Energy, June 8, 2012

[Click on chart to enlarge]

Source: U.S. Energy Information Administration, Petroleum Supply Monthly

Strong growth in U.S. crude oil production since the fourth quarter of 2011 is due mainly to higher output from North Dakota, Texas,and federal leases in the Gulf of Mexico, with total U.S. production during the first quarter of 2012 topping 6 million barrels per day (bbl/d) for the first time in 14 years.

After remaining steady between 5.5 million and 5.6 million bbl/d during each of the first three quarters of 2011, EIA estimates that U.S. average quarterly oil production grew to over 5.9 million bbl/d during the fourth quarter and then surpassed 6 million bbl/d during the first quarter of 2012, according to the latest output estimates from EIA's May Petroleum Supply Monthly report (see chart below). The last time U.S. quarterly oil production was above 6 million bbl/d was during October-December 1998.

[Click on chart to enlarge]

Source: U.S. Energy Information Administration, Petroleum Supply Monthly

The roughly 6% growth in U.S. oil production from October 2011 through March 2012 is largely the result of increases in oil output in North Dakota, Texas, and the Gulf of Mexico. After passing California in December 2011 to become the third largest oil producing state, North Dakota then jumped ahead of Alaska in March 2012 as the state with the second largest oil output [Please see remarks below -- D.R.]. Texas remains far ahead in the number one production spot. [Full story]

(Please see my post "North Dakota Tops Alaska in Oil Production, Trailing Only Texas," including my remarks. North Dakota produced an average of 609,000 barrels of crude oil every day in April 2012, another record, and up from 577,000 barrels a day in March 2012, according to EIA. Also, please see "EIA Expects Higher U.S. Crude Production," Aaron and David Rachovich, "U.S. Crude Oil Production, 1970-2011 -- EIA" and "Texas Crude Oil Production, Jan 2007-Jul 2012" -- D.R.)     

North Dakota Tops Alaska in Oil Production, Trailing Only Texas

by Stephen J. Lee, Inforum, Grand Forks, May 14, 2012
North Dakota passed Alaska in March to become the second-leading state in crude oil production, trailing only Texas, according to officials from Alaska and North Dakota.

It’s been a dramatic rise for a state that was behind seven other states in 2006 in terms of oil production.

North Dakota produced an average of 575,490 barrels of crude oil every day in March, another record, and up from 558,255 barrels a day in February, according to Lynn Helms, director of the state’s Department of Mineral Resources. The crude is coming from a record 6,636 wells, up from the previous record of 6,450 set in February.

The number of rigs drilling in the state was at 208 on Monday, about where it’s been for eight months, including a record 212 drilling for a day or two earlier this month.

North Dakota’s new record output of crude surpassed the steadily declining output of Alaska, which saw its production fall to 567,481 barrels per day in March, down nearly 15,000 barrels from February’s daily average, said Stephen McMains of the state’s Oil and Gas Conservation Commission on Monday.

Meanwhile, Texas’ production has been rising by 12 [11? -- D.R.] percent since September, to 1.72 million barrels per day in February, the latest figures available from the U.S. Energy Information Administration, which tracks state and federal crude oil production. Meg Coleman, a geologist with the EIA, said preliminary figures make it appear Texas’ production increased in March [Texas produced 1.755 million barrels per day in March 2012, according to preliminary EIA figures. -- D.R. Please see also "Texas Crude Oil Production, Jan 2007-Jul 2012" -- D.R.].

Fueled by the Bakken [shale play -- D.R.] boom in the Williston Basin in the western part of the state, North Dakota’s oil production has nearly quadrupled [sic] since March 2007, when it averaged 118,103 barrels per day.

In December [2011 -- D.R.], North Dakota’s crude production eclipsed California for the third ranking; California produced 540,000 barrels a day in February and it will remain about the same when March figures are released later this month, said Gordon Schremp of the state’s energy commission [California produced 538,000 barrels a day in March 2012, according to EIA -- D.R.].

The top four producing states – Texas, North Dakota, Alaska and California – accounted for 55 percent of the nation’s February total crude output of 6.144 million barrels a day, which also includes about 1.4 million barrels per day produced from federal off-shore wells, according to EIA. [...]

Alaska has seen decreasing production for decades, since pumping out more than 2 million barrels a day in the 1970s [sic; in 1987-1988 -- D.R.]. [Read more]

(Also, please see "Five States Accounted for about 56% of Total U.S. Crude Oil Production in 2011," "North Dakota Surpasses OPEC Member Ecuador in Oil Production," "United States: Top 8 Crude Oil Producing States, 2006-Feb.2011," and "North Dakota Oil Tax Revenue Breaks $100M Mark in March as Industry Booms." North Dakota's crude oil production increased sharply in the late 1970s and peaked in 1984 at 144,000 barrels per day. Production declined through the late 1980s and early 1990s. After a small rise in 1995-97, production slowed again. Crude production dropped to 81,000 barrels per day in 2003. But since 2004, it has grown constantly to reach 310,000 barrels per day in 2010, surpassing the previous peak of 218,000 barrels per day in 2009. In 2011, North Dakota's crude output grew further to reach 419,000 barrels per day. Significantly, on a monthly basis, North Dakota's crude oil production rose from 138,000 barrels per day in January 2008, to 357,000 barrels per day in November 2010, to 510,000 barrels per day in November 2011 and, as mentioned, to 575,000 in March 2012. Update: Please watch an interview with Lynn Helms, here Videos -- D.R.)

Venezuela, Maracaibo Basin: Wells and Pumps

by Aaron Rachovich (Rachowitz), may He rest in peace

 Click to enlarge

These pictures were taken by my late Dad, Aaron Rachovich (Rachowitz), during my Parents' trip to Venezuela, Colombia and Trinidad & Tobago in 1999. Numerous offshore oil wells and pumps located in Lake Maracaibo, are seen in the remote background. In addition, please see a picture of onshore pump jack in the Maracaibo Basin, also taken by my Dad.

Argentina's Senate Approves Bill to Expropriate YPF

by OGJ editors, OGJ, Houston, Apr 26, 2012
Argentina’s Senate voted in approval of Argentina President Cristina Fernandez de Kirchner's bill to expropriate YPF SA, and the Lower House of Congress is expected to vote on the measure next week. YPF was a state-run company until it was [fully] privatized in 1999. [Please see remarks below -- D.R.]

Kirchner asked Congress to renationalize YPF by expropriating 51% of it from Repsol YPF SA, which holds 57% of the company [thus slashing Repsol's stake to 6.4% -- D.R.]. She has said YPF underinvested in exploration and production, forcing Argentina to become a net energy importer. [Please see remarks below -- D.R.]

Repsol has vowed to take legal action, saying YPF invested about $3 billion in 2011 and that the company was the biggest investor in Argentina’s oil and gas industry.

“The unlawful expropriation of YPF does not affect the growth capacity of any of Repsol’s businesses outside Argentina,” Repsol said (OGJ Online, Apr. 17, 2012).

The Argentina Senate voted 63-3 in favor of expropriating YPF with 4 members abstaining from the vote. [Full story]

(The full privatization of YPF was completed in 1999 when Repsol of Spain acquired controlling stock from the Argentine state and the stock market---please see Sang-Hyun Yi, "The Political Economy of Privatization of YPF in Argentina," paper, Pusan University of Foreign Studies. For Argentina's crude oil production during the last years, please see "Top 6 Oil Producers in Central & South America, 2006-Feb. 2011 -- EIA." There has been a gradual erosion of Argentine crude oil output from its peak in 1998: in 1998 Argentina produced a record 846,700 barrels per day, but production has declined since, falling to 587,200 barrels per day in 2011---please see U.S. EIA data. The EIA attributed this decline to relatively low levels of exploration activity, combined with natural declines from maturing fields---please see EIA, Argentina Country Analysis Brief. ExxonMobil's Argentinean operations were so far unaffected by YPF takeover: The Argentinean government's decision to take control of Spanish-owned YPF didn't affect ExxonMobil's first-quarter operations in the country. The U.S. oil major said it finished drilling two unconventional wells in that period and will complete or frack those wells in the second quarter. Exxon said it will continue to observe developments in the region---please see SmartBrief, Apr 27, 2012. Update: The Chamber of Deputies [The Lower House of Congress] voted 207 to 32 in favor of expropriating YPF [...], clearing the way for President Cristina Fernandez to sign the bill into law---please see The Telegraph, May 4, 2012 -- D.R.)

Five States Accounted for about 56% of Total U.S. Crude Oil Production in 2011

EIA, Today in Energy, Mar 14, 2012

[Click on chart to enlarge]

Source: U.S. Energy Information Administration, Petroleum Supply Monthly.
Note: Production data includes crude oil and lease condensate. Download CSV Data

Combined oil production (crude oil and lease condensate) from the top five U.S. oil-producing states increased during 2011 (see chart above). The biggest gains were in North Dakota and Texas, due in large part to increased horizontal drilling and hydraulic fracturing activity. Texas, Alaska, California, North Dakota, and Oklahoma accounted for about 56% of U.S. oil production last year, according to EIA's February Petroleum Supply Monthly report.

Highlights from the top oil-producing states in 2011 included:

• Texas. The Eagle Ford shale formation in south Texas contributed to gains in the state's oil production, which averaged 1,425 thousand barrels per day (bbl/d), the highest level since 1997. [Update: for the Eagle Ford production, please my post/remarks here -- D.R.]   
• Alaska. Oil production fell for the ninth year in row, averaging 563 thousand bbl/d.
• California. Oil production averaged 535 thousand bbl/d, the lowest level in at least three decades.
• North Dakota. Preliminary data indicate increasing oil production from the Bakken formation pushed North Dakota ahead of California in December as the third biggest oil-producing state. North Dakota's oil production averaged 535 thousand bbl/d in December 2011 and 419 thousand bbl/d for the year.
• Oklahoma. Oil production averaged 204 thousand bbl/d during 2011, topping 200 thousand bbl/d for the first time since 1998.

[Click on chart to enlarge]

Source: U.S. Energy Information Administration, Petroleum Supply Monthly.
Note: Production data includes crude oil and lease condensate. Download CSV Data [Full story]

(Also, please see "United States: Top 8 Crude Oil Producing States, 2006-Feb.2011." North Dakota has overtaken California as the third-largest oil-producing state in the nation. Production totals released [...] by both states show North Dakota pumped 16.9 million barrels of oil in January [2012], compared with California's 15.8 million barrels. North Dakota had a daily average of 546,000 barrels, besting California by more than 36,000 barrels---please see newsok.com Mar 8, 2012. Update: Crude oil output in North Dakota reached a record high in February [2012] as a mild winter boosted activity in the Bakken shale prospect, bringing the state closer to overtaking Alaska as the second-largest oil producer in the country. North Dakota crude oil production rose by about 12,000 barrels per day (bpd), to more than 558,000 bpd, data from the state regulator showed [...], affirming the state's position as the third-largest producing state in the union after Texas and Alaska---please see Reuters, Apr 11, 2012 Update 2: North Dakota passed Alaska in March 2012 to become the second-leading state in crude oil production, trailing only Texas---please see my post "North Dakota Tops Alaska in Oil Production, Trailing Only Texas."-- D.R.)

The U.S. Surpassed Russia as World's Leading Producer of Dry Natural Gas in 2009 and 2010

EIA, Today in Energy, Mar 13, 2012

[Click on chart to enlarge]

Source: U.S. Energy Information Administration. Download CSV Data

EIA estimates of annual dry natural gas production indicate that the United States surpassed Russia as the world's leading producer of dry natural gas beginning in 2009 when Russian production dropped in conjunction with the economic downturn and reduced demand (see chart above). Both countries produced more than 20 trillion cubic feet (Tcf) of dry natural gas in 2010. Definitive comparisons of natural gas production trends in the two countries are imprecise due to differences in terminology and reporting methodologies.

Dry natural gas production in the United States rose 18% between 2005 and 2010—mainly due to growth in shale gas production. Increased use of horizontal drilling in conjunction with hydraulic fracturing spurred natural gas supply gains. Other factors contributed to gains in natural gas production: improved site planning and field optimization, multi-well drilling from a single pad, rising associated natural gas production from oil plays, and improved drill-bit technology. According to Lippman Consulting, annual shale natural gas production in key shale plays grew from 1.6 Tcf to 7.2 Tcf between 2007 and 2011 (see chart below).

[Click on chart to enlarge]

Source: U.S. Energy Information Administration, based on Lippman Consulting, Inc.
Note: Lippman Consulting, Inc. gross withdrawal estimates, as of December 2011, converted to dry production estimates with EIA-calculated average gross-to-dry shrinkage factors by state and/or shale play.

Since 1996, Russia's dry natural gas production record has been mixed. It was relatively unchanged between 1996 and 2001, grew to almost 22 Tcf in 2006, and then remained relatively stable before declining in 2009. Two factors leading to this decline were a slow-down in domestic natural gas consumption in Russia and Russian suppliers' cutbacks to match reduced gas needs in Europe. Russian dry natural gas production rebounded somewhat in 2010, although the best available data indicate it remained about 2% lower than U.S. production of natural gas that year. [Full story]

(Also, according to the BP data, in 2010, the U.S. has surpassed Russia as the world's top natural gas producer for the second consecutive year---please see "World's Top 21 Natural Gas Producers, 2005-2010 -- BP." In addition, please see "World's Top 15 Natural Gas Proven Reserve Holders, Jan 1, 2012 -- OGJ." -- D.R.)