News From the Oil Patch: Kan. crude prices highest since March - hays Post

By JOHN P. TRETBAR

Kansas crude prices at CHS in McPherson ended the month at their highest level since March 5th, $35.50 per barrel. That's nearly ten dollars higher than a month ago, but ten dollars behind a year ago. The average price for Kansas Common crude during the month of November was $31.55 per barrel, compared to October's average of just over $29.69. The average was over $47 in November of last year.

U.S. crude futures prices are retreating from nine-month highs dropping below $45 per barrel in morning trading Tuesday.

Production cuts by the OPEC+ exporters are set to expire at the end of the year, but talks are underway to extend them. Reuters reports no consensus yet, after preliminary meetings Sunday. The cartel, along with Russia and other allies in the pact, may continue their existing output limits, but disagree on how long the deal should last.

The Rig Count in Kansas was down about nine percent last week. Independent Oil & Gas Service reports eleven active drilling rigs in eastern Kansas, up two, and nine west of Wichita, which is down four for the week. Operators reached total depth last week on three Barton County wells and two in Ellis County. Drilling was underway on one lease in Barton County.

Baker Hughes reported 320 active drilling rigs across the country last week, up ten oil rigs, with the counts in Texas and New Mexico up three.

Kansas regulators approved 12 permits for drilling at new locations across the state last week, five of them east of Wichita, seven in Western Kansas. That makes 424 new permits so far this year. Independent Oil & Gas Service reported 18 newly-completed wells for the week, 750 so far this year. There were five in eastern Kansas and 13 west of Wichita, including one completion in Ellis County.

Oil-by-rail shipments were up for the week but still behind the totals a year ago. The Association of American Railroads reports 10,908 rail tanker-cars hauling petroleum or petroleum products across the U.S.  That's up 164 cars from a week earlier, but down nearly 15% from the same week last year. 

U.S. crude-oil production for the week ending November 20 averaged slightly below 11 million barrels per day, marking an increase over the week before of 81,000 barrels per day. But domestic production remains nearly two million barrels per day behind the output from the same period last year.

U.S. crude oil inventories dropped by 800,000 barrels last week. The government says current stockpiles of more than 488 million barrels are about six percent above the five-year seasonal average.

The Energy Information Administration reports U.S. crude-oil imports declined slightly to just over five million barrels per day. The four-week average is down more than 12 percent from the same period last year.

Colorado regulators gave final approval to some of the strictest oil-and-gas regulations in the country. The new rules include one requiring new wells be at least 2,000 feet from schools and homes. That rule has been labeled "unprecedented" by the state's largest oil-patch industry group, but environmental activists complain it has exceptions and loopholes, and in fact should be larger. Colorado joins Alaska in banning the routine venting and flaring of natural gas. The new regulations take effect January 15. A recent study by the Colorado School of Mines warns of the loss of from 2.5 to 4.5 billion dollars based on oil and gas that cannot be accessed.

A Texas industry group reports a second consecutive month of oil-patch job growth in the Lone Star State. Exploration and production showed an increase of 600 jobs in October according to the Texas Oil and Gas Association. Texas oil-and-gas payroll reached a low point in August, but has increased by 21-hundred jobs since then. The state supports nearly 172,000 jobs in exploration and production.

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News From the Oil Patch: Kan. crude prices highest since March - hays Post
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