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Weekend Summary

Have an article worth sharing? Send it to, and we’ll share it next week in our Weekly Summary segment.

Truckers Needed: Permian Oil Fields

The driver shortage affects numerous industries, not just transportation. The Permian Basin, the most prolific and productive oil field in the U.S., is experiencing its own driver shortage. Roughly 3,000 drivers are needed to keep up with expanding output and necessary deliveries; however, after the massive layoffs in 2014 as the Texas oil industry collapsed, drivers are hesitant to return to the industry. Still, the problem is less acute than it would have been just a few years ago. Fewer wells now produce an equivalent amount of oil, requiring less trucks to transport people and equipment. Click Here to read more from Bloomberg.

Russian Oil Production reaches 30-Yr High in 2017

Despite the OPEC and Non-OPEC production cuts agreed upon in 2017, Russia managed to increase its daily production to a 30-year high of 10.98 MMbpd. That rate was slightly higher than the 2016 average production rate of 10.96 MMbpd, and well above 2015’s 10.72 MMbpd. Russia expects to hold output at its current levels if the OPEC deal lasts through the end of 2018. Click Here to read more from Reuters.

U.S. Production Costs to Rise in 2018

The tale of U.S. shale production has been one of lower costs and improving technological efficiencies. But at least part of these efficiencies will fade in 2018, as producer services firms up their rates in light of higher crude oil production. As field production costs rise, breakeven costs will rise as well, so crude prices will need to be higher than previously forecast to allow for significant output growth. Click Here to read more from the Houston Chronicle.

Addressing Corrosion and Microbial Growth in Today’s Fuel Environment

As fuel quality concerns rise, more fleets are seeking ways to prevent corrosion, filter plugging, and injector deposits.  Last year, the EPA announced that 83% of fuel tanks had moderate to severe corrosion, and 90% of diesel tanks sampled contained traces of ethanol. Facing these issues, how should fleet managers response? Click Here to read some preventative solutions for fuel quality.

This article is part of Weekend Summary

Daily Commodity Report

NO.2 DSL$1.8694▼0.0192
NAT. GAS$3.10▲0.120
CBOT ETHANOL$1.2751▼0.0003
UPDATED01/24/19 - 8:57 a.m.

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