US Oil Production And Where It's Headed
Thanks to the holiday season, US oil production data for October practically went unnoticed. EIA's monthly oil reporting showed US oil production coming in at 13.248 million b/d. Transfers to crude oil supply came in at a static ~735k b/d, while the adjustment factor, once again, surprised to the downside at -373k b/d.
Using our old methodology of figuring out the total crude oil supply:
13.248 + 0.735 + (-0.373) = 13.61 million b/d
Now here's where things get interesting. Because EIA figured out the "transfers to crude oil supply" or aka "blending", we can just use the adjustment figure to calculate real US oil production.
That methodology produces:
13.248 - 0.373 = 12.875 million b/d
Effective US oil production for October came in at 12.875 million b/d. To EIA's credit, ever since they introduced "transfers to crude oil supply", their adjustment figures have been very close to zero (after adjusting for imports/exports).
