Barrel Hub

Overview:  The EIA inventory report for the week ending March 21, 2025, compared to the previous week, indicates a general draw on both crude oil and product inventories. Crude oil stocks saw a notable decrease of 3,341 thousand barrels, while gasoline and distillate stocks also declined by 1,846 and 421 thousand barrels, respectively. Refinery runs experienced a slight increase of 87 thousand barrels per day. These changes suggest a shift towards higher demand or reduced supply, which can significantly influence market dynamics and strategies for oil operators and producers. Key Findings: -Crude Inventories: Crude oil stocks decreased by 3,341 thousand barrels, suggesting increased demand or reduced supply, which could support prices. Cushing, OK stocks also decreased by 755 thousand barrels. -Product Stocks: Gasoline stocks decreased by 1,846 thousand barrels, and distillate stocks decreased by 421 thousand barrels, indicating stronger demand or lower production. -Production Trend: Refinery runs increased by 87 thousand barrels per day, showing a slight increase in production. Propane production also increased by 40 thousand barrels. Market Reaction: The market may react positively to declining inventories, potentially leading to higher prices, benefiting producers. Impact on U.S. Oil Producers: Price Support: Declining crude and product inventories can provide price support, increasing revenue for U.S. oil producers. Demand Strength: Reduced inventories suggest strong demand, encouraging producers to maintain or increase production levels. Production Balance: Increased refinery runs indicate producers are responding to demand signals. However, producers should monitor propane exports, which decreased by 366 thousand barrels, to balance production. Conclusion: The EIA data suggests a tightening oil market with declining inventories and increasing refinery runs. U.S. oil producers can benefit from potential price increases due to lower inventories and strong demand. Monitoring inventory levels and adjusting production accordingly is crucial for optimizing profitability. #oilandgas #eia #doe #producers #operators #txenergy

Have you ever wondered?? The API’s today:   Crude Oíl:        -4.599MM Cushing, OK:   -619k Gasoline:         -3.277MM Distillate:         -1.349MM The American Petroleum Institute (API) and the U.S. Energy Information Administration (EIA) both release weekly reports on U.S. crude oil inventories, but their figures can differ significantly due to several key factors: Data Collection Methods: API: Gathers data through voluntary surveys from its members, which include oil producers, refiners, and storage facilities. This voluntary participation may lead to less comprehensive coverage. EIA: Conducts mandatory surveys with a broader sample size, encompassing both large and small operators. Companies are legally required to provide accurate data, with penalties for non-compliance, resulting in more comprehensive and reliable data. Sample Coverage: API: Represents data from its members and some non-members, covering about 90% of the industry. The remaining 10% is estimated, which can introduce discrepancies. EIA: Aims to account for all U.S. companies holding significant crude oil volumes, providing a more complete industry overview. Reporting Timing: API: Releases its report on Tuesday evenings, offering a preliminary view of inventory changes. EIA: Publishes its report on Wednesday mornings, allowing additional time for data processing and verification, which can enhance accuracy. Due to these differences, the reports may not always align, leading to variations in reported inventory levels. Traders and analysts often monitor both reports, with a preference for the EIA's data due to its comprehensive and mandatory nature. #oil #oilandgas #energy #prices #data #eia #api #inventory

Proud Dad.

Proud Dad!

Who should Pioneer be selling to instead? There's a lot of different ways to answer that (and not enough room to answer here). So, here's a sample of purchasers buying above and below Pioneer's max average $/bbl for 2024-10

Finally, how much could Pioneer make if they were a little more savvy about their upstream pricing? I'll take a measly 10% cut for helping y'all out on this.

Here's the final set of sample month-county transactions for Pioneer Natural Resources These are enormous deltas. Would be interesting to dive in and understand if these are typos in data sources or true positives.

Here's another set of county and month $/bbl comparisons for Pioneer These counties have pretty wide spreads (which is interesting because the products here are 95% WTI). Would be good to find out why the same product is getting such wide price spreads (even with the attribution to transport costs)

Here's a look by county and month at Pioneer's $/bbl performance Interesting that Andrews county tends to overperform when compared to Howard.

Here's another look at Pioneer's market performance by percentile Although it's not fun to see at first, bad pricing indicates room for improvement (which we can take advantage of using Barrel Hub data).