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”.

  Link to a Related Topic:

  Crude Quality and EIA’s ‘Adjustment’