09.25.2023 Energy

Sep 25, 2023
Oil Production vs oil consumption globally
Not too many years ago the major concern for the crude oil market was what was happening domestically. As technology continues to advance we now have access to real time Global energy markets putting us in a position to care about what is happening around the world. This worldwide information access causes a ripple in the energy sector, when domestic activity was our primary concern a 1 cent per day price change was significant, in today’s world a 1 cent per minute or more change every minute of every day is not uncommon. Production and consumption are two very important drives in our global crude oil market, the top 5 crude oil producers and consumers in the world are in this order.
Production                                        Consumption
1. U.S.                                                  1. U.S.
2. Saudi Arabia                                     2. China
3. Russia                                              3.  India
4. Canada                                            4.  Japan
5. Iraq                                                  5.   Saudi Arabia

In the United States we produce almost 12 million barrels of crude oil per day while we consume 21 million barrels per day, you can see why we rely heavily on importing crude from other countries and how the markets have become so volatile.
The price of crude oil has risen over $10 in the last month, reinforcing my previous message that taking delivery and or contracting for this fall as well as a portion of Spring 2024 needs is advisable as we look to assist in limiting customer risk.

Bill Pelzel- Energy Manager Central Region coop