Thursday, July 19, 2007

Monthly Statistical Report
Vol. 31 No. 6
Published July 18, 2007 JUNE 2007

Gasoline deliveries (a measure of demand) and industry production of gasoline both set first-half records in 2007. Gasoline deliveries averaged more than 9.2 million barrels per day for January-June, up 1.5 percent from a year ago. Industry production of gasoline rose 3.4 percent to a first-half high of 8.9 million barrels per day. In addition, gasoline imports, which had lagged during the first quarter, rose to a second-quarter record of over 1.3 million barrels per day.

Meanwhile, deliveries of distillate fuel oil, including diesel fuel, also reached a new high for the first half of nearly 4.3 million barrels per day, up 1.9 percent from the first half of 2006. Deliveries of jet fuel rose a much weaker 0.6 percent, as airlines have continued to seek ways to use fuel more efficiently. Resid deliveries rose 4.8 percent, contributing to an overall increase in U.S. petroleum deliveries for the first half of 1.3 percent.

The first half’s record gasoline production came despite continued unexpected difficulties at some refineries. Refining activity for the first half of 2007 was below 2006 levels by 0.4 percent due to lower input levels in May and a counter-seasonal drop in June. Nevertheless, the industry managed to produce not only record amounts of gasoline, but of distillate fuel oil, as well. Output of distillate fuel oil exceeded 4 million barrels per day for the first January-June period ever, up 2.5 percent from the same period in 2006. Production of jet fuel declined 2.4 percent.

Crude oil inventories ended June at 350.3 million barrels, their highest level since May 1998, and the highest level for June since 1993. Total motor gasoline inventories (including blending components) fell by a larger-than-average 6.6 million barrels from May to end June at 201.9 million barrels. Although that figure was the lowest level for June since 1972, it remained 5 million barrels above April’s recent low.

First-half imports of crude oil and products held nearly steady compared with a year earlier, with a 2.4 percent, year-to-year decline for product imports more than offsetting a slight increase for crude oil. Jet fuel was the only major product to show a year-to-year increase, rising to a record first-half level of 233,000 barrels per day.

Domestic crude oil production in 2007’s first half was 1.3 percent higher than the first half of 2006, when offshore production was still in recovery from the effects of the 2005 hurricanes. Offshore production in federal waters of the Gulf of Mexico through June averaged 1.4 million barrels per day, up by a daily average of 125,000 barrels from the first half of 2006, when a cumulative 58.7 million barrels of shut-in production had gone unproduced. While this helped boost lower-48 production from year-ago levels, Alaskan production fell 5.2 percent from the first half of 2006.

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