Oil refiners in the United States produced just 27.2 million barrels of base oil during the first six months of this year, the third-lowest first half output in the past two decades.
This year’s output for January through June was 7% lower than the same period of last year, according to the latest data from the U.S. Energy Information Administration, and was lower than any first half since 2005 except for 2009 and 2020.
Production in the first six months of 2009, the second year of the Great Recession, was 25 million barrels. In 2020, the first year of the COVID-19 pandemic, first half base oil output was 25.9 million barrels.
U.S. base oil production still has not returned to pre-pandemic levels. In the 15 years from 2005 to 2019, annual production topped 60 million barrels all but three times. Since the start of the pandemic output topped that level just once – in 2021.
Base oil exports from the country dipped 2% in the first six months to 22.9 million barrels, while exports were virtually unchanged at 7.7 million barrels. Both figures have trended steadily upward the past two decades.
Paraffinic base oils accounted for 23 million of the total barrels that domestic refiners produced during the first half of this year, down 8% year to year from 25 million barrels. Refiners made 4.2 million barrels of naphthenic base oils, almost exactly as much made in the same period a year ago.