U.S. Now World’s Biggest Oil Producer
The United States has overtaken Saudi Arabia to become the world’s biggest oil producer as the jump in output from shale plays has led to the second biggest oil boom in history, according to leading U.S. energy consultancy PIRA.
U.S. output, which includes natural gas liquids and biofuels, has swelled 3.2 million barrels per day (bpd) since 2009, the fastest expansion in production over a four-year period since a surge in Saudi Arabia’s output from 1970-1974, PIRA said in a release on Tuesday.
It was the latest milestone for the U.S. oil sector caused by the shale revolution, which has upended global oil trade. While still the largest consumer of fuel, the rise of cheap crude available to domestic refiners has turned the United States into a significant exporter of gasoline and distillate fuels.
Last month, China surpassed the United States as the largest importer of crude, according to the U.S. government, as the rise of domestic output cuts the U.S. dependence on overseas oil.
“(The U.S.) growth rate is greater than the sum of the growth of the next nine fastest growing countries combined and has covered most of the world’s net demand growth over the past two years,” PIRA Energy Group wrote.
“The U.S. position as the largest oil supplier in the world looks to be secure for many years,” it added.
Total liquids produced by the United States, which PIRA defined broadly to include supplies such as crude oil, condensate, natural gas liquids and biofuels, should average 12.1 million bpd in 2013, pushing it ahead of last year’s No. 1 supplier, Saudi Arabia.
Output from the OPEC state also rose last year, but the gains lagged those from the United States, the consultancy said.
PIRA said the increase in oil from shale, which has been centered in areas such as Eagle Ford in Texas and the Bakken in North Dakota, has seen U.S. supply grow by 1 million bpd in 2012 and again 2013.
The United States still lagged both Saudi Arabia and Russia in production of just crude oil by abut 3 million bpd, PIRA noted. Rounding out the top 10 oil suppliers were China, Canada, UAE, Iran, Iraq, Kuwait, and Mexico.
Anonymous
fuel (including gas) – not oil
CR
They measure true oil, synthetic oil, liquids condensed from natural gas, synthesized from gas or coal and biofuels. Calling biofuel “oil” is a bit ridiculous since it is mostly ethanol derived from plant matter. That never goes through an oil stage chemically. Bio-diesel does apply though as it is essentially “junk” vegetable oil.
dont understand
so why is oil so expensive? No wonder the Rebbe spoke so strongly about the US developing alternative sources of fuel and electricity.
American Oil
Years ago an Israeli Arab told me that he believed the U.S.A. had a lot of oil, and that we were just waiting for the cheap Arab oil to run out, and then we would “find” our oil and charge a lot more for it. I laughed and told him he was nuts, but actually he was pretty right on.