Daily Energy Report

Permian crude production at record high, Iran defies US sanctions, OPEC+’s market test, Qatar’s quest for LNG dominance, EV’s emit more particles, Egypt studies Suez expansion, and more.

Chart of the Day: Permian’s crude production at record high

Summary

Permian crude production reached all time high last December as shown in Figure (1) above.  The EIA expects production in March to be flat relative to that of December. 

EOA’s Main Takeaway

Crude production of the Permian is higher than the production of any OPEC members except Saudi Arabia. It is higher than the production of Iraq. It is higher that the production of Iran.  Globally, if Texas was an independent country, it would have been the third largest producer after Russian and Saudi Arabia. Most of the Permian is in Texas. 

Here is the problem: about 3.1 mb/d of the crude produced in Texas is above 40.1 API, of which about 500 kb/d are above 50 API. In most cases around the world, any oil above 45 API is NOT considered crude.

Story of the Day

Bloomberg: Iran Defies US Sanctions With Surging Exports of Liquefied Petroleum Gas

Summary

Iran has been countering US sanctions by increasing its exports of LPG, becoming the top Middle Easter. The US, aiming to curb Iran's financial aid to regional militias, faces the challenge of enforcing sanctions without spiking fuel prices, especially during an election year. Iranian oil production has also surged, reaching a five-year peak with most exports directed to China.