Skip to comments.U.S. oil industry set to break record, upend global trade
Posted on 01/16/2018 11:46:58 AM PST by BeauBo
Surging shale production is poised to push U.S. oil output to more than 10 million barrels per day - toppling a record set in 1970 and crossing a threshold few could have imagined even a decade ago. And this new record, expected within days, likely wont last long. The U.S. government forecasts that the nations production will climb to 11 million barrels a day by late 2019, a level that would rival Russia, the worlds top producer.
(Excerpt) Read more at reuters.com ...
USA breaking the 10 million barrels per day threshold within days!
Our oil production is now double what it was ten years ago.
For oil and gas combined, the USA is already the world's largest producer - and we are rapidly on the way to becoming the world's largest producer of each individually. The areas (ANWR and offshore) that Trump is opening for exploration and production are the biggest in American history, and will produce for decades to come (after they are developed, which will take a decade).
"Top U.S. oil firms such as Exxon Mobil and Chevron a decade ago turned much of their focus to foreign fields, leaving smaller firms to develop U.S. shale. Now theyre back, buying shale companies, land and shifting more investments back home from overseas."
We are quickly becoming a (the) major force in the international oil and gas markets, as our new production increasingly goes toward exports - going from energy self-sufficiency toward Trump's goal of Energy Dominance.
Those 'few', of course, being anyone who was actually paying attention.
That isn't what the MSM was saying 6 or 7 years ago. Back then, extracting shale oil was allegedly poisoning people and causing earthquakes, and wasn't going to amount to much production anyway.
After nearly 50 years of listening to the usual suspects whining about the end of fossil fuels and our American way of life.
“We can’t just drill our way to lower gas prices.” - Barry Obama
well, my sil tells me with every...single...phone call how much money she’s getting....every...single...time....
We should be using our low cost energy, raw materials and resources inside the USA to manufacture products at low cost. Exporting raw materials or energy is never an effective way to build an strong economy.
WINNING BIGGLY!!!!! Covfefe and MAGA!!!!
Meanwhile, dimwitted schmucks Cuomo and Murphy screech that they will stop drilling offshore of NY and NJ.
Clearly Putin moles, trying to prop up Gazprom oil prices!!
INVESTIGATE Cuomo/Murphy Russian COLLUSION!!!
With low cost energy and abundant supplies of raw materials (oil and LNG) expect the USA to dominate the plastics industries world wide.
So how long does it take them to lower our gas cost? will the dem governors raise the gas taxes?
“Exporting raw materials or energy is never an effective way to build an strong economy.”
If we produce more than we use, than exports are an added benefit - more profits, more jobs and more taxes/royalties to the Government.
We consume almost 20 million barrels per day of oil/equivalents (19.7 million b/d in 2016). In 2016, the United States produced an average of about 8.9 million b/d of crude oil, about 3.5 million b/d of hydrocarbon gas liquids (natural gas plant liquids and liquefied refinery gases), and about 1.2 million b/d of biofuels, for a total petroleum production of about 13.5 million b/d (according to the US EIA).
We have added over a million new barrels per day of oil production since then, to about 10 million b/d. Seekingalpha.com reports: “The U.S. production of natural gas liquids (”NGLs”) and fuel ethanol passed the 5 MMb/d level in October 2017, more than doubling during the last decade. Including NGLs and renewable biofuels, the United States has likely already passed the production milestone of 15 million barrels per day and on this metric exceeds - by a wide margin - the other two global leaders in hydrocarbon liquids production, Russia and Saudi Arabia.”
Some types of oil or gas are better for certain purposes. Venezuelan heavy sour crude is better for making asphalt than West Texas Intermediate (WTI). So we would probably import some of that, while exporting WTI, even if we produced an excess beyond our total consumption. Lots of other things are made from oil or gas besides fuel, like plastics, fabrics, and fertilizers - even flavors, fragrances and pharmaceuticals.
We are now already a net exporter of refined petroleum products (like gasoline, heating oil or jet fuel). The balance is moving toward surplus in category after category, as growth in our production exceeds growth in our consumption.
Good for the USA!! I just hope it will lower gas prices for more than just a week or two.
Families need relief from the continual high prices of food and gas.
“Families need relief from the continual high prices of food and gas.”
Oil and gas are basic inputs to our economy, that effect the cost of almost everything.
Higher supply means lower prices for individuals and businesses across the whole country - everybody.
Other factors will come and go effecting gas prices, but this rising US production is the 800 lb gorilla among them - and it works to keep gas prices down.
If Lea County, New Mexico was a state, we would be #7 in US crude oil production [NM is #3].
I seem to remember that there was a contingent here on FR that were all about “peak oil” about a decade ago. Where are those guys now?
I hope it turns out the way you said. On talk radio (maybe Fox Business radio?) a few days ago, it was mentioned the reason prices were going up was because OPEC’s action of cutting production in late 2016 was just now starting to have a real effect. There’s always an excuse.
Maybe I misunderstood the comment,,I was driving at the time and not full attention given to the radio. I hope I heard it wrong.
Lots of things effect oil and gas prices in the short run, several in the medium term, but just a few in the long run.
The growth of US production has been the biggest long term change in the oil and gas markets.
If a hurricane hits the refineries and gas inventories dip for a few weeks, the price will rise for a few weeks or months. When the refineries shut to switch over from Winter to Summer blends, prices will jiggle around a bit. If Iran or Nigeria has a civil war, supply could have an expensive hiccup for several months. If OPEC tightens its belt hard to manipulate prices, they can do it for a couple of years.
But if the US is producing a million, or 1 1/2 million more barrels per day, year after year; no other force out there is as powerful in the long run.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.