Analytical Instrumentation

  • Are US Oil Figures Accurate?

Are US Oil Figures Accurate?

May 10 2018 Read 434 Times

Supply and demand are the bread and butter of oil industry economics. Naturally, statistics and trends play a major role in influencing the marketplace. But are figures as accurate as they're made out to be?

According to the latest monthly estimates released by the Energy Information Administration, US oil demand spiked to 19.62 million barrels a day in February. This represents an increase of almost half-a-million barrels a day compared to February 2017. Or, growth of 2.4%.

Breaking down the boom

However, it's not quite that simple. The "oil" category encompasses more than just crude which means that another, less optimistic figure lies beneath the headline. While overall demand for oil spiked, US consumption of “finished petroleum products” like gasoline and diesel dropped by 189,000 barrels a day. This represents a 1.1% decline and stands in stark contrast to the 2.4% increase splashed across headlines.

So what triggered the 649,000 barrel a day oil demand increase? Hydrocarbon gas liquids like ethane and propane accounted for two thirds of the jump. As liquids they fall into the oil category, though compared to most petrochemical products they're low-value commodities.

The figures have economists concerned, especially when it comes to prices. Gasoline accounted for a huge 89% of the overall drop in demand for refined petroleum products, a price burden which could be passed on to consumers. Since OPEC and Russia spearheaded a joint venture to reign in production back in November 2016 Stateside gasoline prices have jumped from US$2.15 a gallon to roughly US$2.85.

Experts concerned oil bears could come out of hibernation

When viewed on a rolling 12-month basis, trends clearly indicate that the upsurge in US gasoline demand has been steadily flattening out for the past 18 months. It was initially fuelled by a collapse in oil prices, though since the November 2016 embargo prices have started to rise. This inevitably coincided with higher pump prices, and therefore triggered a drop-in demand. There's also concern over the risk of supply shocks, with experts warning that oil bears are currently so scarce that they could severely shake the market if they reappear.

Despite market instability, producers still place a huge amount of focus on maximising efficiency at both refineries and in laboratories. Introducing the latest Energy Dispersive X-ray Fluorescence technology, 'Current Application Trends in the Petroleum Industry Using EDXRF and Process XRT Gauge' explores the robust, simple and fast analytical technique from Texas based company, Applied Rigaku Technologies, Inc.

Read comments0

Do you like or dislike what you have read? Why not post a comment to tell others / the manufacturer and our Editor what you think. To leave comments please complete the form below. Providing the content is approved, your comment will be on screen in less than 24 hours. Leaving comments on product information and articles can assist with future editorial and article content. Post questions, thoughts or simply whether you like the content.


Digital Edition

Petro Industry News September 2018

September 2018

In This Edition Fuel for Thought - New Partnership for the US Distributio - Element opens new oil and gas laboratory in Singapore - Metrohm Acquires B&W Tek Analytical Instrumentation...

View all digital editions

Events

SPE Annual Technical Conference & Exhibition

Sep 24 2018 Dallas, Tx, USA

Rio Oil & Gas 2018

Sep 24 2018 Rio De Janeiro, Brazil

Control-Tech

Sep 25 2018 Kielce, Poland

International Pipeline Expo

Sep 25 2018 Calgary, Alberta, Canada

MOGSEC 2016

Sep 25 2018 Kuala Lumpur, Malaysia

View all events