Skip to comments.‘Relentless’ growth could see the US topple Russia, Saudi Arabia as world’s largest oil producer
Posted on 01/31/2018 5:49:39 PM PST by GoldenState_Rose
The U.S. is well-placed to overtake the likes of Saudi Arabia and Russia as the world's leading energy producer over the next 12 months, according to the latest monthly report from the International Energy Agency (IEA).
"This year promises to be a record-setting one for the U.S.," the IEA said in its closely-watched report published Friday.
The latest monthly report from the IEA comes at a time when crude futures have climbed to highs not seen since the early days of a slump in December 2014. Brent crude futures hit a peak of $70.37 a barrel on Monday, with the global benchmark since paring some of its recent gains to trade at $68.69 on Friday morning.
US 'beat all expectations' in 2017
U.S. crude production stands at 9.9 million barrels a day, according to the IEA, which is the country's highest level in almost 50 years. That level of supply puts the U.S. neck-and-neck with OPEC kingpin Saudi Arabia the world's second-largest producer after Russia.
"U.S. growth of 0.6 million barrels a day in 2017 beat all expectations, even with a moderate price response to the output deal as the shale industry bounced back profiting from cost cuts, stepped up drilling activity and efficiency measures enforced during the downturn," the group said.
In recent years, America's unprecedented oil and gas boom has been driven by one factor above all others and that's shale. The so-called shale revolution could help to alleviate Washington's reliance on foreign oil, including from turbulent Middle Eastern states, while also supporting a bid to export to more countries around the world.
(Excerpt) Read more at cnbc.com ...
... and then the changing technologies, go electric, shaking their economies one more time. lol
let them lubricate their bicycle chains!
are we winning on that front too - with that Tesla Elon Musk stuff?
Kenyan mooslum must be sick to his stomach.
OMG that would be horrible!
We will never really know but it must make Obunghole furious that any putrid legacy of his is flushing down the toilet bowl.
How about toppling their governments?
“We cant just drill our way to lower gas prices.” - Barry Obama
Tesla is still being subsidized. IMHO they are making a mistake by going down market in the cars they are offering. Economics 101 in cars is that you have to make a huge number of cars to be viable in that market. That is not going to happen. They are viable in the high end market.
Can anyone explain why oil prices are going up at the same time production is? Shouldn’t prices be coming down?
If demand is increasing even more than supply, then the price will go up.
Shale boom is one of the reasons of the turbulence in the Middle East and Eastern Europe.
Sellout US politicians who are in bed with the Arab kingdoms understands that they may not outright prohibit US oil development which is a huge problem for their Arab sponsors who are profiting selling oil to US.
In order to compensate the kings they are trying to give them European market hijacking it by marginalizing established players and providing pipeline routes.
That is basically an undeclared war with zero US interest in play except for the interest of corrupt politicians working for foreign governments.
All of them should be hanged before its too late.
“Can anyone explain why oil prices are going up at the same time production is?”
1. The Global market is ultimately the main driver of the price. Global demand is rising (all of the 45 biggest economies expanding at the same time - Thank You President Trump). Supply outside the USA was constrained - some other major producers are producing less, notably Venezuela, which is collapsing. OPEC and Russia agreed to significantly restrain their production, to run down inventories, and drive up prices.
2. Inventory levels are the most important measure of supply, for prices in the near term. US inventories declined last year, because of the hurricane disruption, and a big increase in demand for US exports, due to a significantly lower price in the USA (driven by what was then near capacity US inventory levels).