U.S. crude oil production fell 3.5% in September after Hurricane Ida temporarily halted most crude production in federal waters of the Gulf of Mexico, according to a monthly report from the U.S. Energy Information Administration (EIA) on Nov. 30.
Crude output dropped 380,000 barrels per day to 10.809 million bbl/d from a revised 11.189 million bbl/d in August, the report said. The decline came as production in the offshore Gulf of Mexico fell by 464,000 bbl/d, offsetting onshore gains.
Ida disrupted Gulf of Mexico production as it passed through the Gulf at the end of August. As a result of the storm, 96% of crude oil production and 94% of natural gas production in federal waters of the Gulf of Mexico was halted, according to the September EIA report. The disruptions continued into early September.
At the same time, onshore oil production in Texas, the top-producing state, rose 87,000 bbl/d in the month, and North Dakota, the second-largest producer, had a gain of 8,000 bbl/d, the EIA said.
The oil market is closely watching U.S. production as it has struggles to recover to pre-pandemic levels. September’s output was about 2 million bbl/d below the record high, reached in March 2020.
As production fell in the month, demand gained.
Total U.S. petroleum demand in September rose 9.8%, or 1.81 million bbl/d, from a year earlier. Demand changes are measured year on year to account for seasonal variations in demand.
In September, demand for distillates including diesel fuel was up 6.8% from a year earlier, while gasoline demand rose 5% from a year earlier.
Meanwhile, natural gas production for the U.S. excluding Alaska fell to 104,672 MMcf/d in September from 105,354 in August. Natural gas production offshore also fell, dropping by 40% in the month to 1,203 MMcf/d, the EIA said.
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