Nate. It noted that according to the latest reports from Baker
Hughes, the average US rig count for October fell 1.9% from
September but increased 69.8% from October 2016 to 922
rigs working—the highest October count in 3 years.
Crude and product imports both decreased year-to-year
during October but rose during the first 10 months. October’s average 7. 3 million b/d of crude imports, excluding
purchases for the US Strategic Petroleum Reserve, was the
third lowest amount for the month in 22 years and 2.1% less
than in September, API said.
Downstream, inputs to refineries’ crude distillation units
rose by 3.3% year-to-year in October to an average 16. 3 million b/d, and by 2.3% during the first 10 months from the
comparable 2016 period to more than 16. 8 million b/d. Refinery utilization rates also grew year-to-year to 87.8% in
October and 90% through Oct. 31, API said.
ADNOC budget envisions
Abu Dhabi National Oil Co. plans capital investment of
about $100 billion during the next 5 years as it assesses Abu
Dhabi’s unconventional resources and seeks downstream investments abroad.
In a statement announcing Supreme Petroleum Council
approval of its budget, ADNOC said the pursuit of “interna-
tional downstream strategic and commercially viable invest-
ments” aims at “reshaping ADNOC into a global company.”
The statement said ADNOC plans to increase its crude re-
fining capacity by 60% and to more than triple petrochemi-
cal production to 14. 4 million tonnes/year by 2025 “through
a staged expansion plan aimed at initially optimizing its ex-
isting assets to grow and diversify its products portfolio.”
ADNOC said an aromatics project will convert naphtha,
currently exported, into gasoline and aromatics. And “a
large project to enhance the crude processing flexibility of
its 900,000-b/d refining system will be taken forward.”
ADNOC said it is on track to increase oil production ca-
pacity to 3. 5 million b/d by the end of next year and to im-
prove drilling time by 30% by 2019.
Its plan to explore unconventional resources focuses on
natural gas and gas liquids, according to Sultan Al Jaber,
minister of state and ADNOC Group chief executive officer.
Aiming to ensure economic supply to meet growing gas
needs of the United Arab Emirates, ADNOC will assess un-developed tight reservoirs, tap gas caps, and expand sour
gas production. It has begun drilling tight reservoirs, the
ADNOC recently confirmed plans to offer 10-20% of
ADNOC Distribution, its fuel distribution unit, in an initial
public offering that would be its first placement of shares in
a subsidiary in public markets.
continue. That evaluation is being conducted by the Michigan Agency for Energy, the Michigan Department of Environmental Quality, and the Michigan Department of Natural
Resources, with advice from the PSAB.
The state will be accepting public feedback on its final
alternatives analysis report online and at public meetings in
December addressing what should be done regarding Line 5
in the long term.
A contract for a separate independent risk analysis—led
by Michigan Technological University—is being finalized.
These analyses, along with public input and the new agreement, will shape a final recommendation from the state on
the future of Line 5.
API: US product demand
highest for October since 2007
Total US petroleum product deliveries averaging 19. 9 million b/d reached their highest October monthly average
since 2007, the American Petroleum Institute said in its latest monthly statistical report. Demand last month, which
API expresses as products supplied, was 1.1% higher than
October 2016’s average of nearly 19. 7 million, with jet kerosene, motor gasoline, and residual fuel oil showing the largest year-to-year percentage gains.
Product deliveries through Oct. 31 totaled nearly 19. 9
million b/d, 1.2% more than the nearly 19. 7 million b/d during 2016 first 10 months. But product exports during October jumped 34.7% year-to-year to an average of more than
6. 7 million b/d from nearly 5 million b/d a year earlier, API
reported. Exports through Oct. 31 rose 13.8% to more than
5. 9 million b/d from the 2016 period’s more than 5. 2 million
b/d average, API’s figures showed.
“The economy continues to grow as fuel demand remains
strong and more people find work,” API Statistics Director
Hazem Arafa said as API released its latest monthly statis-
tics on Nov. 17. “Unemployment went down last month, and
gasoline prices remain relatively low benefiting American
businesses and workers.”
US crude oil and condensate production, meanwhile,
climbed 7% year-to-year in October to an average 9. 4 mil-
lion b/d and 3.3% through Oct. 31 to more than 9. 1 million
b/d from the first 10 months of 2016. Natural gas liquids
production also rose by 4.1% year-to-year during October to
an average of nearly 3. 7 million b/d, and by 4% to nearly 3. 7
million b/d through Oct. 31.
Year-to-year declines in crude oil and gas liquids production during September reflected impacts from Hurricane