U.S. crude production falls by 3.5% in Sept after Ida hit offshore output -- A flare burns excess natural gas in the Permian Basin in Loving County, Texas
NEW YORK - U.S. crude oil production fell by 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 on Tuesday.
Crude output fell 380,000 barrels per day to 10.809 mln bpd from a revised 11.189 mln bpd in August, the report said. Production in the offshore Gulf of Mexico fell by 464,000 barrels per day, a decline that offsets onshore gains.
Ida disrupted Gulf of Mexico production as it passed through the Gulf at the end of August. According to the September EIA report, 95 % of crude oil production and 94% of natural gas production were stopped in federal waters of the Gulf of Mexico as a result of the storm. In Texas, the top-producing state, onshore oil production increased by 87,000 barrels per day in the month, and North Dakota, the second-largest producer, had a gain of 8,000 barrels per day, the EIA said.
The oil market is watching U.S. production as it struggles to recover to pre-pandemic levels. September's output was about 2 million barrels per day less than the record high reached in March 2020.
Demand increased as production fell in the month.
In September, the total U.S. petroleum demand rose 9.8%, or 1.81 million barrels per day, 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 went up 6.8% from a year earlier, while gasoline demand increased 5% from a year ago.
Natural gas production for the United States excluding Alaska fell to 104,672 million cubic feet per day in September from 105,354 in August. The EIA said that natural gas production offshore fell by 40% in the month to 1,203 million cubic feet a day.