Japanese refining scaled back in the first weeks of January to 2.86 mb/d while we expected runs to remain at 2.95 mb/d. Crude inventories rose by 3 mb, although remaining way below the 5-year average for Japan. In the US, the EIA’s drilling productivity report showed two interesting facts. First, the backlog of drilled but uncompleted wells (DUCs) has been steadily declining since the beginning of the pandemic. DUCs are now at 4.6k, from 8.5k in January 2020. as this backlog clears, US Shale producers will have to drill more to maintain the output constant. In terms of region, the Permian production in Texas recovered to pre-pandemic levels in December, above 5 mb/d. Other regions such as Eagle Ford of Bakken are still below 2019 levels.
Get more analysis and data with our Premium subscription
Ask for a free trial here
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.