Has the EIA Solved the Problem of High “Adjustment” Numbers?
A discussion of the relationship between the EIA’s “Adjustment” and US crude production and Exports. (With 7 Charts)
MAIN TAKEAWAYS
US tight-oil production and Texas crude outputs have increased to record highs.
The EIA has resolved most of the high “adjustments” by counting NGLs in blended crude, which should reduce the “adjustments” by one-half to two-thirds. This was part of the crude quality impact we have been highlighting since 2017.
Although the high adjustment number in the EIA’s weekly data published on September 7 surprised us, it confirmed the view that there is more to the story than just blending. It is all about crude “classification”.
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