Daily Energy Report
Texas crude at new high, Nigeria grid collapse and impact on oil sector, Fuel prices soaring, OPEC responds to IEA, US ethane hits record high, Freeport LNG cancels 4 Cargoes, and more
Chart of the Day: Texas Crude Production at Record High and Third in the World after Russia and Saudi Arabia.
Figure (1) above shows Texas crude oil production since the beginning of 1981. Texas crude production was declining rapidly until the start of the shale oil revolution in 2010. Production collapsed every time oil prices collapsed as we have seen in 2015-2-016 and in 2020.
However, Texas crude production has been increasing in 2023 and reached an all-time high last June.
EOA’s Main Takeaway
As we learned in a previous report, US tight oil production reached a record high last June. June is the latest monthly data available. As our readers know, the weekly production data are estimates and have proven to be useless. That is why we are focusing on June’s numbers.
Unlike what narrative-pushers were saying about the peak or decline in shale production, it increased to the extent that Texas crude oil production reached a record high in June as shown in Figure (1-1) below.
Just to show the meaning and the magnitude of this level of production, we present Figure (1-2). It compares Texas crude production to OPEC members. If Texas were an OPEC member, it would have been the second-largest producer after Saudi Arabia. In fact, if Texas was an independent country, it would have been the third largest producer in the world after Russia and Saudi Arabia.
Story of the Day
Power generation in Nigeria, Africa's most populous nation, plummeted to zero megawatts early in the morning, with connections slowly restored throughout the day. While Nigeria frequently experiences power supply issues, this recent outage was the most significant in the past year. It was attributed to a fire-caused explosion in a transmission line linking two power plants. Power Minister Adebayo Adelabu confirmed that over half of the connections had been restored. Due to the unreliability of the national grid, many Nigerians rely on alternative power sources, especially with increased costs after the government removed fuel subsidies last May.