2014 April 11

The Master Resource Report 2014-04-11

The US top oil producing counties

Drillinginfo posted a very interesting map and supporting data that highlights just how small the area producing half of US oil production really is.

One highlight is that Kern County California is number three and it has been producing now for over 100 years. A second illustrates just how important the very rapid growth in North Dakota production has been. If the two deep water Gulf of Mexico blocks are excluded McKenzie County in North Dakota moves up to the number three spot behind Beechey Point, Alaska and Kern County in California. Given the realities of tight oil production it will be interesting to see where McKenzie County is 100 years from now.

Top 20 counties produce half the oil - DrillingInfo

Click map for link to Drillinginfo post.

US gasoline demand

The EIA reported gasoline for the week ending April 4th reached 8.996 million barrels per day up over 500,000 barrels per day over year ago levels for the same week. The four week average which takes some of the weekly volatility out was up 370,000 barrels per day.

As pointed out last week if US gasoline demand begins to move above the 9 million barrel per day level before the peak driving season even starts it will be a sign the assumptions about where US gasoline demand is headed need to be reevaluated.