News from the Oil Patch, Feb. 9
by John P. Tretbar
Domestic crude-oil production dropped to a 15-month low last week, down from the record setting heights achieved in the last couple of months. Last week, the US Energy Information Administration published its lowest weekly production average since November of 2024. At just over 13.2 million barrels a day, output is down nearly half a million barrels a day from last week and a quarter-million barrels a day from the same week last year. Weekly production reports from EIA have held consistently over 13.5 million barrels a day since last September. By November, average output surpassed 13.8 million in each of nine consecutive weekly reports, a streak that ended three weeks ago.
Commercial crude inventories dipped 3.5 million barrels to just over 420 million as of January 30. The Energy Information Administration reports stockpiles are four percent below the five-year average for this time of year.
The government reports another 200-thousand barrels added the strategic stockpiles stored on our behalf in some caverns in Louisiana. The Strategic Petroleum Reserve tops out slightly over 415 million barrels, up 20 million barrels or five percent from a year ago.
At 6.2 million barrels a day, crude imports are up half a million daily barrels from a week ago but down 700-thousand barrels from the same week a year ago. The four week average is down 3.2%. The government says crude exports are down more than half a million barrels, but remain above four million barrels per day.
The Rotary Rig Count from Baker Hughes is up five gas rigs and up one oil rig for a total of 551 rigs. The breakout for horizontal rigs is up five. Texas is up six rigs.
The Kansas Rig Count from Independent Oil and Gas Service is unchanged in Western Kansas at six active rigs. The tally east of Wichita is down two at five rigs. The totals are down 21 percent from a month ago and 26% lower than a year ago. On Friday, operators were drilling or about to start on a lease in Gove County and two in Rooks County.
As of this week, operators in Kansas have drilled 39 wells from spud to completion in 2026, down from 86 during the same period last year. So far this year, 15 active operators have drilled nearly 50-thousand total feet of well bore in Kansas. Last year at this time, 40 operators were listed, drilling nearly double that total footage. Independent Oil and Gas Service reports 13 new well-completions this week, 78 so far this year, compared to 143 by this time last year. There are four new completions west of Wichita including one in Ellis County and one in Gove County.
Kansas regulators approved five new drilling locations this week, all of them in Western Kansas, including one new permit in Stafford County and one in Rooks County. That's 45 new permits this year compared to 66 last year at this time.
State geologists recently upgraded online reporting on oil and gas in Kansas, and the newest numbers reflect a continuing decline in production. Only one of the top ten counties posted an increase. Statewide output through the first three quarters of last year drops to just over 70,000 barrels a day, from just over 73,000 daily barrels for all of 2024. Ellis County production drops to just over 5,400 barrels a day, down 210 barrels from the year before. Ranked second among counties, Haskell County averaged just a few barrels shy of five thousand barrels a day, up 599 barrels for the only countywide increase. Finney County drops to 4,100 barrels a day. Barton County checks in with 3,736 barrels per day, down by 110 barrels. Russell County drops to just over 3,300 barrels, and Stafford County dips to just over 2,300 barrels a day.
Cleanup continued after a massive drilling rig tipped over and crashed to the tundra in Alaska's North Slope. The huge ConocoPhillips rig is known as "the Beast." It toppled along a frozen gravel road within the National Petroleum Reserve-Alaska. According to the Anchorage Daily News, a third-party firm is investigating the cause of the accident and subsequent fuel spill, but only when the weather makes it safe. Temperatures rose into the 30s the day of the incident but returned to subzero conditions afterward.
The recent nationwide cold snap dubbed "Winter Storm Fern" forced a huge draw on energy in the US. Fern spurred the largest weekly net natural gas withdrawal in Energy Department records. The numbers reflect increased demand for both space heating and electricity generation, as well as reduced supplies due to equipment freeze-offs and shut-ins. Natural gas spot prices for the week nearly doubled in some locations. In the week ending January 25, 2026, natural gas generation in the Lower 48 states increased 14% from the previous week while generation from solar, wind, and hydropower declined. Coal-fired electricity generation increased 31% from the previous week. EIA says during the week of Winter Storm Fern, Nuclear generation was nearly unchanged.Independent Oil and Gas Service notes some familiar names in its list of the top Kansas drillers last year.
East of Wichita that's RJ Energy, Colt Energy, C&G Drilling, McGown Drilling and TDR Construction. In Western Kansas, Duke Drilling leads the list with 73 wells drilled to total depth, followed by Murfin Drilling with 52 wells. Rounding out the top five were Discovery Drilling, Pickrell Drilling, and Sterling Drilling.