US crude oil production up 2.2M barrels per day from 2017
U.S. crude oil and other liquids production increased in 2018, and the U.S. Energy Information Administration (EIA) forecasts it to average 17.8 million barrels per day (b/d) for the year. That will be the highest level since EIA records began in 1994, and it will account for an increase of 2.2 million b/d from the 2017 production level.
America surpassed Russia and Saudi Arabia earlier in 2018 to become the largest crude oil producer in the world based on monthly data. U.S. crude oil production was at record levels in 2018, and EIA forecasted that 2018 annual crude oil production would reach 10.9 million b/d, surpassing the previous annual high of 9.6 million b/d set in 1970.
U.S. crude oil exports averaged 1.9 million b/d in 2018, about twice the amount that was exported in 2017. Crude oil overtook distillate as the largest U.S. petroleum export.
The growth in U.S. exports of crude oil and petroleum products led to a one-week period in late November when the United States was a net exporter for the first time in EIA’s data history.
Brent and WTI crude oil end year at lower prices than they began
Brent crude oil averaged $72 per barrel (b) in 2018, and West Texas Intermediate (WTI) averaged $65/b in 2018, according to EIA. The prices for both crude oils finished the year lower than they began. Brent and WTI each hit their highest prices during the year on Oct. 3, 2018, at $86/b and $76/b, respectively. Prices for each benchmark fell quickly after that, and on Dec. 24, Brent reached an annual low of $50/b and WTI reached an annual low of $43/b.
Brent ended the year at $54/b, $13/b lower than it began the year, and WTI ended the year at $45/b, $15/b lower than it began the year. This year marks the first time since 2015 that crude oil prices for these benchmarks ended the year at a lower price than at the beginning of the year.
Oil and gas pump sales at 9 million units in 2018
The oil and gas pumps market is likely to witness sluggish growth, with global demand surpassing 9 million units by the end of 2018, according to a report by Fact.MR. Rising demand for oil and gas is resulting in the growing demand for equipment such as oil and gas pumps.
End users of oil and gas pumps are using centrifugal pumps on a large-scale, owing to their low product and maintenance cost as well as better load and pressure handling capabilities. The demand for centrifugal pumps is healthy in the upstream oil and gas industry as the part of multiphase pumping application, according to the report.
Analysts also expect the demand for submersible pumps to grow in the near future. Electric submersible pumps are being used on a large scale as water and oil separators. The centrifugal pumps are also expected to witness increasing demand for crude oil transportation. Manufacturers in the oil and gas pumps market are focusing on pump modification to save significant amount of energy and improve performance.
The study also predicts rapid growth in demand for onshore oil and gas pumps, with the market exceeding 4.8 million units in 2018.