ployed persons increased slightly, up 4.4% and 7.1 million,
“Strong economic growth is boosting petroleum de-
mand,” said Hazem Arafa, API director of statistics. “Mean-
while, domestic production remains high, allowing con-
sumers and businesses to continue to enjoy relatively low
fuel costs. This is a winning combination.”
Total motor gasoline deliveries, a measure of gasoline
demand, decreased 1.5% from August 2016 to average 9. 5
million b/d—but remained the fourth-highest deliveries to
date. Compared with July, total motor gasoline deliveries
decreased 1.5%. For year-to-date, total motor gasoline de-
liveries decreased 0.3% compared with year-to-date 2016
to the second highest year-to-date level at 9. 3 million b/d.
Distillate deliveries in August were up from the prior
month, the prior year, and the prior year-to-date to reach the
highest August deliveries in 10 years and the highest deliveries since March. Distillate deliveries averaged 4.1 million
b/d, up 6.5% compared with August 2016 and were up 0.7%
compared with July. For year-to-date, distillate deliveries increased 3.2% compared with year-to-date 2016.
US crude oil production remained above 9 million b/d
for the seventh consecutive month. US crude oil production in August decreased from the prior month but was up
from the prior year and the prior year-to-date to reach the
second-highest August output in 45 years.
US crude oil production decreased 1.3% from July but
was up 6.8% from August 2016 to average 9. 3 million b/d
in August. For year-to-date, crude production increased
2.4% compared with year-to-date 2016—and was the second highest year-to-date level since 1973.
Natural gas liquids production reached a record level
last month. NGL production in August averaged 3. 7 million b/d, up 1% from last month, 8.6% from last year, and
2.9% from last year-to-date.
According to the latest reports from Baker Hughes, the
average US rig count for August decreased 0.6% from July
but increased 96.9% from August 2016 to 947. This was
the highest August count in 3 years but remained the third
lowest August count in 15 years. Year-over-year increases
were seen for the eighth month straight.
US total petroleum imports decreased 2% from July and
decreased 6.4% from August 2016 to average just below 9. 7
million b/d in August. These were the lowest imports since
November 2015. For year-to-date, total petroleum imports
were up 1.6% compared with year-to-date 2016.
Crude oil imports decreased 7% from August 2016 to
nearly 7. 5 million b/d in August. These were also the lowest
imports since November 2015.
Compared with July, crude oil imports were 3.2% lower.
For year-to-date, crude imports were up 3.1% compared
with year-to-date 2016.
Petrobras headlined the event by submitting the largest signing
bonus, $700 million, for Campos basin Block C-M-346, interest
of which will be split 50-50 with Petrobras as operator.
Five more Campos basin blocks shared 50-50 by the firms
and operated by Petrobras include Block C-M-411, for which
the firms will pay $375 million, as well as Blocks C-M-210,
C-M-277, C-M-344, and C-M-413. ExxonMobil also will operate with 100% interest Blocks C-M-37 and C-M-67.
In the Sergipe-Alagoas basin, ExxonMobil will team as
operator with 50% interest with Queiroz Galvao Exploracao
e Producao SA (QGEP), 30%, and Murphy Oil Corp., 20%,
on Blocks SEAL-M-501 and SEAL-M-503. Murphy says the
acreage is near several major Petrobras discoveries.
Those blocks are next to Blocks SEAL-M-351 and SEAL-
M-428, in which QGEP has farmed out 50% interest and operatorship to ExxonMobil and 20% interest to Murphy. The
ultradeepwater blocks are 80-100 km off Brazil and cover
1,500 sq km.
QGEP will be reimbursed for 70% of the $30 million
signing bonus that it paid for the blocks as part of ANP’s
13th round in October 2015. The company also will be fully
reimbursed for seismic costs related to the blocks, among
Petrobras also took operatorship and 100% interest in onshore Block PAR-T-175 in the Parana basin. The firm said it
hopes to find large gas deposits in the area, which is near the
Brazil-Bolivia gas pipeline.
The 14th round awarded 37 blocks covering 25,000 sq
km to 17 companies from eight countries. Contracts for the
blocks are expected to be signed until Jan. 31, 2018.
Two more auctions will be held by ANP this year, the 2nd
and 3rd presalt rounds on Oct. 27. In 2018 and 2019, three
bid rounds will be held each year: one for mature areas, one
for the presalt, and one for exploration blocks.
API: US petroleum
demand highest for
August since 2007
Total US petroleum deliveries, a measure of petroleum demand,
moved up 1.3% in August from a year ago to average 20. 5 million b/d, marking the highest August deliveries in 10 years, the
American Petroleum Institute reported.
Compared with July, total US petroleum deliveries decreased 0.6%. For year-to-date, total US petroleum deliveries moved up 1.3% compared with the same period last
The US economy continued to grow in August, adding
156,000 jobs, according to the US Bureau of Labor Statistics. The US unemployment rate and the number of unem-