U.S. domestic petroleum deliveries—a measure of demand—plunged 5.8 percent for the first half of 2009, as the sluggish economy continued to stifle oil consumption, the American Petroleum Institute reported in its latest Monthly Statistical Report.
At 18.75 million bpd, oil deliveries for the January-to-June period were at their lowest level in more than a decade, and dropped nearly 10 percent from the peak of 20.75 million bpd reached in the first-half of 2005.
"The economic slowdown has had a particularly large impact on diesel and on jet fuel, though gasoline remains depressed, as well," said API Statistics Manager Ron Planting.
First-half jet fuel deliveries slid nearly 13 percent from a year ago as a result of reduced air travel, while distillate fuel oil deliveries dropped 8.6 percent on sluggish demand for freight transportation.
Residual fuel oil deliveries tumbled 9.1 percent, reflecting both fuel substitutions and the economic slowdown. First half gasoline deliveries slipped less than 1 percent from already depressed levels of a year ago to 9.037 million bpd, reaching their lowest level for the period since 2003.
Following two consecutive annual declines in 2007 and 2008, crude oil and product imports dropped 7.6 percent in 2009's first half due to slumping demand and increased domestic supplies. Total imports fell 7.6 percent for the January-to-June period versus the first half of 2008.
"As a result, this year's first-half imports were down fully 12 percent from the same period three years earlier," the release read. "The three-year reduction in imports of 1.65 million bpd was nearly evenly split between crude oil and products."
The data showed that for the second quarter alone, total imports sank more than 12 percent compared with a year ago. At 8.95 million bpd, crude oil imports reached their lowest second-quarter level in over a decade.
API reported that for the first half, U.S. crude oil production reached its highest level in four years at an average 5.29 million bpd. Output was up 3.8 percent from a year ago, reflecting new production from the offshore Gulf of Mexico and gains in North Dakota and other onshore areas.
Despite a 12 percent drop in Alaskan production tied to maintenance work on the Trans-Alaskan Pipeline, U.S. crude oil production in June still managed to increase 1.1 percent from May—the sixth straight year-on-year increase for average monthly production.
June's refinery inputs rose to nearly 15 million bpd-the highest level since November 2008. The average utilization rate of U.S. refineries rose a more-than-seasonal two percentage points from May to 84.5 percent for June-well above the average for all manufacturing industries, which according to the Federal Reserve Board stood at 64.7 percent capacity for June.
API reported that for the second quarter, industry production of gasoline reversed the first quarter's decline with an increase of a little over 1 percent from a year ago. First-half output of gasoline averaged over 8.8 million bpd, within 1 percent of the all-time high for the period set in 2007.
Second quarter distillate production, however, fell more than 7 percent, reversing the first quarter's increase. First-half distillate production was 4.14 million bpd, 2.3 percent below the year-ago, all-time high.
Distillate fuel inventories, already at a recent year high in May, rose seasonally in June to 157 million bbl—the highest level for any month since November 1986. Inventories of ultra-low sulfur diesel, the fuel required for on-highway use, remained above 90 million bbl for only the second month on record.
Gasoline inventories for the month reviewed reversed May's decline with an increase to 212 million bbl, which was marginally ahead of gasoline inventories for June 2008.
June's crude oil inventories were down for a second month in a row, falling more than 12 million bbl to 349 million bbl. Though crude oil inventories at mid-year were down nearly 22 million bbl from April's high, they remained nearly 53 million bbl or 18 percent above a year ago.
