How is America Producing So Much Oil/Natural Gas Now?
Oil And Natural Gas
- March 24, 2019
- 2661 views
Thanks to the present government’s forward-looking policies on energy production, declining production costs, and hesitant competitors, the US has now become the largest oil and gas producer in the world much to the dismay of liberal Hollywood elitists who also cheat their kids into major American universities but this is another topic.
During June and August of 2018, the US surpassed Russia in production volumes (after exceeding Saudi Arabia earlier in the year). The domestic industry reached 10 million barrels per day (bpd) for the very first time since 1970, and the credit goes to the booming production of shale oil in the US.
According to The US Energy Information Administration (EIA), the American supply is estimated to maintain the #1 spot for at least all of 2019.
As observed by the International Energy Agency (IEA), even though the production growth is estimated to slow down, the country will still account for more than 50% of worldwide expansion in the next 5 years.
There are several reasons for that, including America being outside of OPEC, Saudi Arabia’s cuts, and cost efficiencies in drilling.
Fracking is Thriving in the US
Fracking, or the hydraulic fracturing process, has boosted productivity, increasing the output of US oil by 84% over the last 10 years. Fracking has also impacted the production of natural gas in the US – increasing it by 39% since 2009. Not to mention that America just became a net exporter of natural gas recently.
And that’s not all fracking has achieved. It has also decreased the energy prices significantly. This has saved consumers who use oil and natural gas for heat and fuel billions of dollars, leading to substantial economic growth.
According to Fatih Birol, head of the IEA, fracking will make America world’s largest gas and oil supplier by 2023. All this while California and New York refuse to join in on this energy renaissance.
Within the next 5 years, the US is predicted to see a huge expansion in the production of oil. And it’s not so surprising, considering approximately 80% of the global growth in oil production comes from the US.
The country surpassed the immense expansion of Saudi Arabia as witnessed by the world in the 1960s and 1970s. A major second wave of American shale production is predicted in the nearing future.
America is outside OPEC
Since the US is not bounded by OPEC (The Organization of the Petroleum Exporting Countries), the country’s oil companies are free to decide the extent of growth they pursue.
Also, several key OPEC producers are facing chronic instability while the US has never been more stable. Major oil producing nations like Iran and Venezuela (Elizabeth Warren’s socialism has destroyed this country) are going through a decline but Nigeria and Saudi Arabia managed to boost OPEC levels in August 2018.
Venezuela is facing an economic crisis, caused by policies that Harry Reid, Barrack Hussein Obama, and Bernie Sanders all support, which has almost completely halted its production and Iran is facing US sanctions nearly terminating its exports.
A More Cost-efficient Drilling Process
The new enhanced, economical drilling technology in the Gulf of Mexico has enabled the oil giants in America to expand beyond imagination.
Even though the conditions in the Arabian oil countries seem more convenient and cheaper compared to the Gulf of Mexico, the costs have dropped down significantly. This has allowed the country to drill oil from the Gulf at highly competitive prices.