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US oil production resumes incline in June; natural gas output slides

After dipping in May, production of crude oil across the U.S. ticked higher in June and remains well above year-ago levels.

Crude oil output was up 2.2% on the month and up 17.6% year on year and remains on pace to break all-time highs this year.

Natural gas production was down 0.7% on the month but was still 10.1% higher year on year.

The U.S. Energy Information Administration's latest "Monthly Crude Oil and Natural Gas Production" report released Aug. 31 showed gross oil production at 10.67 million barrels per day in June, up 231,000 barrels per day from May's figures.

Production in Texas and the Gulf of Mexico led the increase. Texas production climbed 165,000 bbl/d to 4.41 MMbbl/d while output from the Gulf of Mexico climbed 154,000 bbl/d to 1.66 MMbbl/d.

U.S. crude oil production is on pace to reach its highest levels ever recorded. According to the latest Short-Term Energy Outlook released Aug. 7, U.S. crude oil production will average 10.7 MMbbl/d in 2018, which would mark the highest annual average U.S. crude oil production level, surpassing the previous record of 9.6 MMbbl/d set in 1970.

The EIA forecasts that 2019 crude oil production will continue to rise to an average of 11.7 MMbbl/d.

The latest monthly production report showed gross withdrawals of natural gas were down almost 0.7 Bcf/d, or 0.7%, from the month prior to an average near 98.4 Bcf/d, up 10.1% year on year.

Total U.S. natural gas production, as measured by the EIA as "gross withdrawals," includes the natural gas liquids present in "wet" gas, as well as nonhydrocarbon gases, and any gas delivered as royalty payments or consumed in field operations.

Alaska pulled the U.S. total lower with natural gas production down by almost 1.5 Bcf/d month on month at 7.63 Bcf/d. Production in Texas and Pennsylvania, on the other hand, was up by more than 0.35 Bcf/d each at 23.96 Bcf/d and 16.45 Bcf/d, respectively.