U.S. oil production fell by more than 1 million barrels per day in February, the lowest level since October 2017.
The U.S. Energy Information Administration (EIA) reported that U.S. crude oil production fell by 1.197 million barrels per day in February to 9.862 million barrels per day.
U.S. oil production
It is noteworthy that the February data is the first time that U.S. oil production has fallen below the level of ten million barrels per day since January 2018.
The U.S. oil production drop came as a very cold spell in Texas halted some production, but declines also occurred in other major oil-producing states.
EIA revised oil production for the month of January, down by 21,000 barrels per day to 11.059 million barrels per day.
In another context, total natural gas production in the United States decreased by 7.8 billion cubic feet per day to 94.8 billion cubic feet per day in February. This is the largest recorded monthly decline according to EIA.
U.S. natural gas production peaked at 107.1 billion cubic feet per day in December 2019.
In addition, U.S. energy companies added oil and gas rigs this week, leading to the ninth consecutive monthly increase in the number of rigs, while the price recovery lures some drilling companies to resume activity.
Baker Hughes Energy Services company stated that the number of oil and gas rigs, a preliminary indicator of future production, increased by two and reached 440 in the week ending April 30, its highest level since April 2020.
This is the sixth time the rig count had increased in the past seven weeks, lifting the total number by 32 rigs compared to a year ago.
The number is also up 80%, since it hit a record low of 244 rigs in August 2020, according to Baker Hughes which has been working in the field since 1940.