American Oil and Gas Reporter - October 2016 - 24

IndustryDigest
CIPA: Workforce Survey
Shows Jobs A Reason
For Public Policy Caution
SACRAMENTO, CA.-The
California Independent Petroleum
Association has released results from a
confidential member survey that shows
how low commodity prices have taken a
toll on the California oil and gas
industry's workforce. According to
CIPA Chief Executive Officer Rock
Zierman, one major takeaway from the
survey-which finds that respondents'
workforce has slid nearly 40 percent
since 2014-is that adding new burdens
to the state's oil and gas industry could
extract a further toll on California
workers.
Policymakers should exercise
caution because challenges in the oil
and gas industry could have larger
impacts on the overall economy, he
warns. "Oil and gas companies pay
billions in dollars each year to state and
local government coffers," Zierman
observes. "These lost jobs also mean
lower tax revenue at a time when
displaced workers will need more
government assistance. A strong and
healthy industry helps the state's overall
economy and provides Californians
with responsibly-produced, affordable
energy."
Last quarter, CIPA confidentially
surveyed member companies to
examine the employment impact of
market conditions and steeper
regulatory compliance costs, the group
says. CIPA adds that companies
participating in the survey produce oil
and gas in 32 California counties.
The survey reveals respondents pay
employees an average salary of $78,491
a year, while data from the Bureau of
Labor Statistics shows the statewide
average lags well behind that at $51,910
a year, CIPA details. It also reports that,
among companies providing ethnic
demographic data, an average 30
percent of member companies'
workforce is of Latino origin. ❒

Gas Storage Levels
Increase By 199 Bcf
WASHINGTON-Underground
natural gas storage in the United States
stood at 3.600 trillion cubic feet on
Sept. 23, 6.5 percent above the five year
24 THE AMERICAN OIL & GAS REPORTER

average, according to the U.S. Energy
Information Administration. That was
up 199 billion cubic feet from the 3.401
Tcf in storage on Aug. 26, which was
10.9 percent above the five-year
average. The Sept. 23 storage number
was 91 Bcf more than a year ago, when
gas storage stood at 3.509 Tcf.
According to EIA, gas storage in the
East Region was 874 Bcf on Sept. 23,
4.4 percent above the five-year average
and 78 Bcf more than on Aug. 26, when
storage stood at 796 Bcf, which was 6.0
percent above the five-year average.
East Region gas storage on Sept. 23 was
44 Bcf more than a year ago.
Gas storage in the Midwest Region
stood at 1.014 Tcf on Sept. 23, 6.7
percent above the five-year average and
110 Bcf more than the 904 Bcf in storage
on Aug. 26, which was 10.0 percent
above the five year average. Sept. 23 gas
storage in the Midwest Region was 72
Bcf more than a year ago.
In the Mountain Region, EIA says,
gas storage was 233 Bcf on Sept. 23,
20.7 percent above the five-year average
and 11 Bcf more than the 222 Bcf
stored on Aug. 26, which was 24.7
percent above the five year average. Gas
storage in the Mountain Region was up
33 Bcf from a year ago.
Gas storage in the Pacific Region
was 318 Bcf on Sept. 23, 5.9 percent
below the five-year average, but 8 Bcf
more than the 310 Bcf stored on Aug.
26, which was 6.1 percent below the
five-year average. Pacific Region gas
storage on Sept. 23 was down 36 Bcf
from a year ago.
In the South-Central Region, gas
storage levels on Sept. 23 were 1.161
Tcf, 9.3 percent above the five-year
average, but down 8 Bcf from the 1.169
Tcf in storage on Aug. 26, which was
18.4 percent above the five-year
average. The Sept. 23 gas storage level
for the South-Central Region was down
22 Bcf from a year ago. r

August's Crude Output
Off From 2015, API Says
WASHINGTON-U.S. crude oil
production in August was up 0.3 percent
from July, but down 9.2 percent from
August 2015, to an average 8.5 million
barrels a day, the American Petroleum
Institute says in its September Monthly
Statistical Report. For year-to-date,
crude production was down 6.1 percent

compared with year-to-date 2015, but
was the second highest year-to-date
level in 31 years.
Natural gas liquids production in
August was up from the prior month,
prior year and the prior year-to-date,
and reached the highest output for any
month on record, API says. August
NGL production averaged more than
3.6 MMbbl/d, up 2.0 percent from last
month, 9.8 percent from 2015, and 9.3
percent from last year-to-date.
According to the Baker-Hughes Inc.
rig count, the U.S. average in August was
up 32 rigs from July, to 481. However,
API points out the count represents the
sixth-lowest number on record, and the
lowest August count. The report says the
count is down 402 rigs (45.5 percent)
from August 2015's 883.
At 10.3 MMbbl/d, API says gasoline
production for the month of August
reached its highest level for any August
on record. This was up 2.7 percent from
the prior year and 0.3 percent from the
prior month. Year-to-date, gasoline
production increased by 2.0 percent
compared with the same period last
year, and was the highest year-to-date
on record.
API says total U.S. petroleum
imports in August averaged 10.7
MMbbl/d, up 2.5 percent from the prior
month, 9.7 percent from the prior year,
and 6.9 percent year-to-date. August
crude oil imports increased 9.8 percent
from August 2015, to nearly 8.4
MMbbl/d, the agency reports.
Compared with July, crude oil imports
were 3.6 percent higher, while year-todate comparisons show 2016 was 8.1
percent above the 2015 mark.
Exports of crude oil and refined
products increased 14.3 percent in
August, compared with August 2015, to
average 520,000 bbl/d, the Monthly
Statistical Report states, adding that
was the highest August export level
ever. Crude oil stocks ended August at
515.1 MMbbl, the highest August
inventory in 96 years. Crude stocks
were down 4.5 MMbbl, or 0.9 percent,
from the prior month, but up 57.3
MMbbl from the prior year, API says. ❒

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American Oil and Gas Reporter - October 2016

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