Issue 100- Texas Gulf Coast Drilling
Introduction…American Petroleum Institute reports U.S. petroleum demand for last month was the hightest in 109 months. Total U.S. petroleum delivers in May moved ut 4.9% from May 2016 to an average of 20.1 million b/d. These were the highest May deliveries in 10 years and the highest delivery for any month in more than 9 years.
What caused demand to increase? The overall US economy grew adding 138,000 jobs in May. The unemployment rate changed little at 4.3%.
“Strong demand for petroleum is a good sign for the economy which grew for the 96th consecutive month,” said Chief Economist Erica Bowman. “American workers and consumers continue to benefit from these positive economic signs along with relatively low fuel prices.”
Crude oil production was up from the prior month, the prior year, and the prior year-to-date to the highest output level for any month since October 2015. Crude oil production increased 0.9% from April and was up 5.1% from May 2016 to average 9.3 million b/d in May.
In conclusion…A strong U.S. economy creates a strong demand for petroleum. In this case, what’s good for the U.S. economy is good for the petroleum industry.