America’s crude oil production is relentless.
For several months, the Energy Information Administration’s weekly update on inventories has highlighted that the oil in storage continues to swell to the most it’s been in at least 80 years.
The EIA projected that the US will produce 10.6 million barrels per day in 2020 — more than its previous estimates, in its annual energy outlook published last Tuesday.
This chart of weekly inventories via Deutsche Bank’s Torsten Sløk illustrates just how much crude is sitting in storage. “SPR” is the Strategic Petroleum Reserve — emergency capacity (currently at 691 million barrels) that’s mandated by the Department of Energy.
And this build comes in the face of a continued decline in the US oil rig count, which has impacted companies oil services companies like Schlumberger and Halliburton while production continues to grind higher.
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