API: February NGLs Production Falls 2.6%% versus January
3/23 12:39 PM
API: February NGLs Production Falls 2.6% versus January OAKHURST, N.J. (DTN) --- The American Petroleum Institute's February Monthly Statistical Report show domestic natural gas liquids production of 5.9 million bpd, its highest for the month on record since 1973. While production was down 2.6% from January, the data show that compared with February 2022 it was up 8.6%. API noted the decline from January marked "the third largest monthly decline for the month since 2013. The largest decline in NGL month-on-month decline production for the month, which was 18.6%, occurred in February 2021. In February 2021, we saw the disruption of refining and petrochemical plant activities from a historical cold snap." U.S. crude oil production was reported at 12.3 million bpd in February, up 0.5% from January. Compared to February 2022, crude oil production was up 1 million bpd. A day-weighted average of active oil-directed rigs from Baker Hughes reflected 603 rigs in February, a 1.8% decrease from January while a day-weighted average of natural gas-directed drilling rigs of 152 in February fell by 2% over the same period. The extraction of NGLs depends on the relative values of ethane, propane, and butane, which historically have tended to correspond with those of crude oil. API reports U.S. petroleum exports of 10 million bpd in February, including crude oil at 4.2 million bpd and refined products at 5.8 million bpd. This marked an increase of 400,000 bpd from January. Petroleum net exports were at the highest level for the month of February and at the second highest for all months on record since 1947. At the same time, API reports domestic petroleum imports rose by only 28,000 bpd month-on-month. In sum, the U.S. was a net petroleum exporter of 1.1 million bpd in February. In February, U.S. refinery throughput, measured by gross inputs into crude distillation units, was 15.5 million bpd and implied a capacity utilization rate of 85.8%. The throughput decreased 0.1% versus January and by 2.7% year-over-year to its lowest level since March 2021. On the supply side, at 478.8 million bbl in February, commercial crude oil inventories increased 26 million bbl from January and were 17% more than February 2022. API reports this was the largest monthly rise in inventories for any given month since April 2020. U.S. Strategic Petroleum Reserve inventories remained stable in February at 371.6 million bbl, their lowest since December 1983. Consequently, the U.S. ending stocks of crude oil, including commercial and SPR, decreased by 13.9% year-on-year in February to 850.6 million bbl. Distillate inventories have been closely monitored amid a global shortage. Domestic distillate inventories remained below their historical five-year range in February. In terms of days of supply, distillate inventories were at approximately 32.4 days of supply as of Feb. 28, compared with 33.5 days of supply in February 2019, according to the Energy Information Administration. (c) Copyright 2023 DTN, LLC. All rights reserved.
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