News from the Oil Patch, 4/20/26
By John P. Tretbar
The United States, for the first time, is within striking distance of becoming a net crude-oil exporter. A relatively new data-point in the government's Weekly Petroleum Status Report has hit something of a milestone: net crude imports, for the first time, drop below one million barrels a day. In other words, we're getting closer to becoming a net crude exporter. We have always imported more than we exported, but it's now getting close. Subtracting crude exports from crude imports has, up to now, yielded net imports of between one and four million barrels per day.
This week EIA notes net crude imports of just 66-thousand barrels. Crude export rise more than a million barrels a day from last week, as imports drop more than a million barrels. Crude imports and exports are now, each just a few barrels over 5.2 million, and just 66-thousand daily barrels (1.2%) apart.
The US Supreme Count last week sided with Big Oil in a case with big implications for other companies. The high court says oil giant Chevron can fight an environmental lawsuit in federal court. The decision could affect the outcomes a host of other lawsuits that make similar allegations about the oil and gas industry. This ruling came in one of 42 lawsuits filed in Louisiana seeking billions to cover restoration and remediation costs. It could likely impact dozens of other suits involving everything from oil spills to the effects of climate change.
The State of North Dakota is celebrating an anniversary this month. Back in April of 1951 the so-called Clarence Iverson well struck oil a few miles south of Tioga, North Dakota. The discovery ignited 75 years of exploration and production that now surpass all but two states. Oil and gas now accounts for more than half of all taxes collected in the state. The International Energy Agency says the Iran-war supply shock will stifle demand, as consumers respond to surging prices. The IEA forecasts a drop of 1.5 million barrels a day in the second quarter, the biggest drop in oil demand since the Covid-19 pandemic. Demand is expected to fall by 80,000 barrels a day for the year, compared to earlier expectations of a big increase in demand this year.
The head of the IEA hopes we won't need it, but says they're ready to act if the war with Iran requires another strategic crude release. The US reports another four million barrels swapped out from our stockpiles this week, dropping the Strategic Petroleum Reserve to just over 409 million barrels. Commercial inventories are down nearly a million barrels to just under 464 million, or one percent above the five-year seasonal average.
Crude production is up slightly in Alaska and down slightly in the lower 48 states. The average national output of 13,596,000 barrels per day is unchanged from last week. Cumulative production this year, and the four-week average, are both over 13.6 million barrels a day.
The Rotary Rig Count from Baker Hughes is down to 543 rigs. The directional and horizontal drilling breakouts drop the total by five rigs. The gas rig-count is down two and the oil tally is down one. US rig counts are down by 42 rigs from a year ago. Most of the state breakouts are unchanged this week, but New Mexico and Louisiana are each down one rig. The Texas count of 232 rigs is down 42 from a year ago.
The Kansas Rig Count from Independent Oil and Gas Service is unchanged statewide, up one to eleven rigs in eastern Kansas, and down one at eight rigs west of Wichita. The total is up 26 percent from a month ago, but down 20% from a year ago.
Independent Oil and Gas Service reports 19 new well-completions this week with five in Western Kansas, including new oil wells in Rooks and Russell counties.
The KCC grants 39 permits for drilling at new locations this week, 181 so far this year, compared to 221 a year ago. There are nine in Western Kansas, 30 east of Wichita. The list includes three in Rooks County where they have eleven so far this year. Finney County adds one, for a total of three so far this year.