U.S. may soon become world's top oil producer

[Tempest]

Quote:
U.S. oil output is surging so fast that the U.S. could soon overtake Saudi Arabia as the world's biggest producer.

Driven by high prices and new drilling methods, U.S. production of crude and other liquid hydrocarbons is on track to rise 7 percent this year to an average of 10.9 million barrels per day. This will be the fourth straight year of crude increases and the biggest single-year gain since 1951.

The boom has surprised even the experts.

"Five years ago, if I or anyone had predicted today's production growth, people would have thought we were crazy," says Jim Burkhard, head of oil markets research at IHS CERA, an energy consulting firm.

The Energy Department forecasts that U.S. production of crude and other liquid hydrocarbons, which includes biofuels, will average 11.4 million barrels per day next year. That would be a record for the U.S. and just below Saudi Arabia's output of 11.6 million barrels. Citibank forecasts U.S. production could reach 13 million to 15 million barrels per day by 2020, helping to make North America "the new Middle East."

http://www.cbsnews.com/8301-505123_162-57538431/u.s-may-soon-become-worlds-top-oil-producer/

 

[John_K]

Free gas for everybody!

John

 

[friendly_jacek]

You have to remember that even with that surprising jump in production (exceeded the 1970's peak), US consumes twice as much oil as it produces (19-20 mln barrels/day). So, no reasons to celebrate yet. Please let me know when US becomes net exporter and we will celebrate.

Now, imagine what would happen if US drivers ditched their gas guzzlers and switched to efficient cars (50-60 MPG, like the best hybrids). Sudden energy independence! But, judged on the frequent hybrid bashing on this forum, it's not going to happen.

 

[kschachn]

And that's a problem how?

I also have oil company stocks in my 401K, etc. Everyone getting richer is a good thing IMHO.

Originally Posted By: Donald
All to make **** Cheney rich!!

 

[eljefino]

Neato. I thought all we made was Hollywood movies and Wall St paper shuffling.

 

[Rock_Hudstone]

Originally Posted By: friendly_jacek
So, no reasons to celebrate yet. Please let me know when US becomes net exporter and we will celebrate.
Now, imagine what would happen if US drivers ditched their gas guzzlers and switched to efficient cars (50-60 MPG, like the best hybrids). Sudden energy independence! But, judged on the frequent hybrid bashing on this forum, it's not going to happen.

Whatever good news the future may bring on U.S. oil production no doubt you and other Clovers will find reasons to [censored] on that as well.

 

[johnnydc]

Is this going to lower fuel prices? Probably not! I do think we should keep the oil for ourselves considering how much we consume. Just my 1.5 cents...

 

[KevGuy]

What about the oil sands of your northern neighbour?

 

[tenderloin]

I have a friend whose dad brought property in the 50's in the Dollar Joe claim area of the Bakken ND. He is now $$$$$$$. Almost all on privarte property. Build the pipeline from Canada instead of Canada selling oil to the Chinese and with other drilling along with Mexico we would be much closer to North American independence. Improved MPG on vehicles is also a given..How far ho fast ?

 

[johnnydc]

Originally Posted By: KevGuy
What about the oil sands of your northern neighbour?

I agree. The U.S. and Canada should keep it for ourselves.

 

[Shannow]

If history is anything to go by, there's going to be a massive dump in oil price, just long enough for these newly viable wells and technologies to become non-viable and go out of business.

Having flushed them all out of the system, the prices can then step back to where they want to be.

 

[tenderloin]

The cost of producing oil from these new sources is coming down. Sure the Saudis and others can sell it cheaper, but with other countries producing oil it will be much harder this time to shut off these new areas as happened a while back.

Million Dollar Way All Bakken all the time

 

[daves66nova]

It'll probably all go to paying the debt we have with China!!.

 

[friendly_jacek]

Originally Posted By: Shannow
If history is anything to go by, there's going to be a massive dump in oil price, just long enough for these newly viable wells and technologies to become non-viable and go out of business.

Having flushed them all out of the system, the prices can then step back to where they want to be.


Very true. The reasons for the coming dump is the demand destruction caused exactly by the high prices in the first price.
That will wipe out the global economy too.

 

[Tempest]

Quote:
The reasons for the coming dump is the demand destruction caused exactly by the high prices in the first price.

Say what?

 

[SteveSRT8]

Originally Posted By: johnnydc
Originally Posted By: KevGuy
What about the oil sands of your northern neighbour?

I agree. The U.S. and Canada should keep it for ourselves.

Exactly. Oil should be treated as a strategic resource and is really 'owned' by the citizens of the country it was extracted from.

 

[Tempest]

Originally Posted By: SteveSRT8
Originally Posted By: johnnydc
Originally Posted By: KevGuy
What about the oil sands of your northern neighbour?

I agree. The U.S. and Canada should keep it for ourselves.

Exactly. Oil should be treated as a strategic resource and is really 'owned' by the citizens of the country it was extracted from.

So you want the government central planning oil supplies and deliveries?

 

[Rock_Hudstone]

Originally Posted By: Tempest
Quote:
The reasons for the coming dump is the demand destruction caused exactly by the high prices in the first price.

Say what?

Economist talk meaning higher oil prices eventually leads to less demand, thus a fall in prices.

However, oil is priced in U.S. dollars, the U.S. dollar is continually is losing value with all the Fedreal Reserve QE money printing. Hence, the purchasing power of the dollar declines, therefore more dollars are needed to buy a barrel of oil, thus the price inflation across the board we see today.

The last time oil prices really collapsed was during the Reagan adminstration when Fed chairman Paul Volker allowed interest rates to jack up into the double digits to stop the inflation of the late 70's

This is excatly what is needed today but would bankrupt the Federal government in short order and cause a major recession/depression, lots of pain in the short term but would clear the decks for a real economic recovery, but unfortunately it is politically impossible.

Instead the can will be kicked down the road until it gets too big to kick anymore.

 

[SteveSRT8]

Why of course! Government always does best!

You know where I stand, I'm a free market kind of guy. But the sale of oil to other countries directly undermines this one. It may need a tax on exports or some such lever to make an incentive to sell it here.

 

[Tempest]

Quote:
Please let me know when US becomes net exporter and we will celebrate.

Quote:
The United States in 2011 exported more petroleum products, on an annual basis, than it imported for the first time since 1949, but American refiners still imported large, although declining, amounts of crude oil, according to full-year trade data from EIA's Petroleum Supply Monthly February report. The increase in foreign purchases of distillate fuel contributed the most to the United States becoming a net exporter of petroleum products.

U.S. petroleum product net exports (exports minus imports) averaged 0.44 million barrels per day (bbl/d) in 2011, with imports at a nine-year low of close to 2.4 million bbl/d and exports at a record high of nearly 2.9 million bbl/d. The gap between exports and imports widened the most during the second half of the year from August through December (see charts below), with total monthly exports topping 3 million bbl/d for the first time.

http://www.eia.gov/todayinenergy/detail.cfm?id=5290