Supply glut? Is the author smoking crack?
Yes, our domestic production has gone through a significant increase. 5 years ago we only produce 5.15 MMBPD and our consumed 17.96 MMBPD or refined products.
U.S. Field Production of Crude Oil
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MCRFPUS2&f=M
U.S. Product Supplied of Finished Petroleum Products
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MTPUPUS2&f=M
While our production has climbed 42% to 7.35 MMBPD and our consumption has fallen 10% to 16.19 MMBPD, we only produce about half of what we use?
How the heck is about half of what we use a supply glut?
How the heck is about half of what we use a supply glut?
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I don’t think there is a supply glut right now either. The US is just refining oil and exporting gasoline so extra US supply is just being dumped into the world market. And US prices are set by world wide supply/demand
However, it looks like the USA is going to add another 1 million barrels@day of oil supply this year and early indications are that in each of the next several years the USA will also add another 1 million barrels@ day.
That’s why Citibank earlier this year said that by 2017 the USA will be a net oil exporter.