The American Petroleum Institute reports U.S. oil imports exceeded the 8.5 million b/d mark in July, the highest level in nearly a year.
Imports supplied 50% of demand for the month, although API said real import reliance is 45-46%.
"The highly variable nature of imports and deliveries means that the odds of exceeding 50% in a given month increase as the underlying trend in import reliance grows," API said.
"Total imports as a percent of domestic deliveries on a monthly basis exceeded the halfway mark only three times in the 1970s, but this is the eighth time in the last 3 years the ratio has exceeded 50%."
Meanwhile, API figures show U.S. oil production dropped 200,000 b/d, or 2.7%, compared with July 1990. A larger than typical 120,000 b/d, or 6.6%, decline in Alaska was partly offset by a smaller than average 1.5% slip in the Lower 48.
So far this year, oil production has dropped 240,000 b/d, or 3.2%.
Drilling activity also continues to slide, according to API estimates of well completions.
Overall, well completions in first half 1992 were off more than 20% from 1 year earlier.
Even so, the decline was moderated by a less extreme drop for dry holes, with oil and gas completions each dropping by 25% or more."
Petroleum demand continued weak in July, with deliveries slipping 1.3% from a year ago.
API said "In fact, July's deliveries, as with June, made an even poorer showing than might have been expected based on the trends of earlier this year. This suggests that petroleum deliveries, along with the economy as a whole, have been suffering the consequences of a lethargic recovery.
"The weakest performers among major products were gasoline and residual fuel oil, which dropped 0.8% and nearly 18%, respectively, from July 1991.
"Somewhat brighter results were apparent for distillate fuel oil and kerosine jet fuel, which rose 3.8% and 3.3%, respectively, over year ago levels due to higher truck traffic and continued growth in air travel."
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