Thursday, February 08, 2018

Energy 106, US oil output now 10+ mbpd

From only 5 million barrels per day (mbpd) oil production in 2010, up to 10.2 mbpd average for January 2018, congratulations America. And EIA's projection is 10.6 mbpd average for 2018. OPEC (mostly dictatorial member-governments like Venezuela, Iran, Saudi) and Russia are quivering.

"U.S. producers are making new customers out of some of the world’s biggest oil-importing nations in Asia and Europe, posing a serious competitive threat to the only other countries that produce as much crude: Saudi Arabia and Russia....

U.S. producers now export between 1.5 million and 2 million barrels of crude a day, which could rise to about 4 million by 2022. The nation’s output is expected to account for more than 80 percent of global supply growth in the next decade, according to Paris-based International Energy Agency."

"The Permian Basin of Texas and New Mexico is the engine for U.S. shale production and acquisitions, helping to increase U.S. output to more than 10 million barrels a day in November for the first time in more than four decades. Exxon Mobil Corp. is spending billions to triple output by 2025 from the Permian, where its costs are as low as $15 a barrel."

See here -- two dictatorial governments having a pact to counter US capitalism in oil. And they will use... US technology? :-)

“The exchange in December highlights how Russia and Saudi Arabia have over the past 18 months forged an unlikely alliance in energy, despite being on opposing sides on other issues such as the Syrian conflict.

The traditional rivals, which combined produce a fifth of the world’s crude, now speak with a united voice on energy-related matters and frame their relationship in strategic terms.

The trigger for a rapprochement that seemed unthinkable a few years ago was a common enemy: US shale oil. The collapse in oil prices from 2014, as hydraulic fracturing unlocked a flood of US crude that caught other producers off guard, set their collaboration in motion.”

And this explains why world oil prices, WTI and Brent, are declining in recent day (last chart, above). Trump's "energy dominance" policy will somehow soften the TRAIN de Du30's "expensive oil via higher taxes please" policy?

See also:

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