[Home]  [Headlines]  [Latest Articles]  [Latest Comments]  [Post]  [Mail]  [Sign-in]  [Setup]  [Help]  [Register] 

Why America Will Want Donald Trump Back in the White House

The new border chaos: a crisis of Biden’s own making

The DeSantis moment: Florida's governor emerges as possible Trump successor

Report: World Needs Equivalent Of Pandemic Lockdown Every Two Years To Meet Paris Carbon Emission Goals

Lockdowns: Which ‘Experts’ Were Right?

Coal Fired Power...

Trump’s Triumph at CPAC

CPAC Is Still Trump’s, But Something Has Changed

Democrats' disgraceful lies keep on giving

At CPAC ... The conservaTive faiThful --- double down on Trumpism

'EaTing while black'... N.Y. Times admiTs eliTe college scapegoaTed janiTors in race hoax --- Officials appeased sTudenT who claimed she was profiled

Pics/Video ... 51-day Waco siege began wiTh deadly ATF shooTouT --- 28 years ago

The Communist Takeover Of The United States

Time To Impeach Our Government

Is This Why Jim Acosta Went to CPAC?

HUGE BREAKING NEWS - Judge Rules Maricopa CounTy ... MusT Provide 2.1 Million BalloTs From 2020 --- To Arizona SenaTe for AudiT

HUGE BREAKING NEWS - Judge Rules Maricopa CounTy ... MusT Provide 2.1 Million BalloTs From 2020 --- To Arizona SenaTe for AudiT

WAR: Rep. Marjorie Taylor Greene Decorates Hall Outside Her Office After Dem Rep. Puts Up Trans Flag

NoT Making Headlines ... California BLACK Man Films Himself on Facebook Live ... wiTh Two Dead Women on The Floor He Killed --- Including Minor

‘Blessings Of LiberTy’ ... How ‘The EqualiTy AcT’ Viciously ATTacks --- ChrisTians - Freedom - SocieTy - Sex - You

Biden bends to the ayatollah

Oklahoma murder suspecT confesses To ... killing neighbor - cooking her hearT --- invesTigaTors say

Biden Is No FDR

Jason Chaffetz: Biden-Harris' disastrous start – first month full of hypocrisy, scandal and incompetence

Biden is set to repeat Obama’s Mideast failures — and wipe out US influence

How the GOP can win back Congress

There Is No GOP Civil War

Biden rewards Iran’s bad behavior by begging it to make a deal

‘Never before’ has the leader of the free world [Biden] been ‘so cognitively compromised’

ATTorney Lin Wood Releases STaTemenT Before Supreme CourT Ruling ... on ElecTion Fraud Today --- UPDATED WITH NEW COMMENT

Biden and his assistant is too cruel a punishment with which to hit America.

TiTanic ... Genius Time Traveler goes back --- everyone saved !

Rush Limbaugh passed away this morning

Remember ... George Will --- Me neiTher.

Eating Biden’s Lunch

Biden Wrong to Consider Restricting Travel to Florida

The Real Reason ... Pelosi & McConnell Folded LasT NighT Leaks --- Lock Them Up

GOP Party

Seven turncoats: What motivated those Republicans to vote guilty?

Real life study: Masked schoolchildren are harmed physically, psychologically, behaviorally and suffer from 24 distinct health issues

Trump Celebrates Acquittal, Hints At Political Future

SNAKE - McConnell ... Uses Floor To BruTally Trash Trump --- Following Failed ImpeachmenT EfforT

BREAKING - Trump ... Releases StaTemenT --- Following ImpeachmenT AcquiTTal

BREAKING - SenaTe VoTes 57 - 43 ... To ACQUIT Donald Trump --- Here Are The SEVEN Republicans Who VoTed To ConvicT

SCHOOLBOY 'KILLERS' Thugs - 15 - 17 ... 'filmed Themselves gang raping woman - 36 - beaTing her To deaTh' --- 'in a park as oTher boys waTched'

Joe Biden Is a F#@ing Idiot!

ImpeachmenT blunder - AuThor of TweeT inTroduced aT Trial says iT was ... Calvary / prayer - crucificTion --- falsified - misinTerpreTed to caValry / horses - soldiers - invasion

Georgia's New Democrat Senator Is Under Investigation for Voter Registration Fraud

Tom MacDonald - "Fake Woke"

Five Vanities That Are Destroying America


Status: Not Logged In; Sign In

Business
See other Business Articles

Title: US May Soon Become World's Top Oil Producer
Source: Associated Press
URL Source: http://hosted.ap.org/dynamic/storie ... AULT&CTIME=2012-10-23-16-10-33
Published: Oct 23, 2012
Author: Associated Press
Post Date: 2012-10-23 17:05:59 by Brian S
Keywords: None
Views: 423

NEW YORK (AP) -- U.S. oil output is surging so fast that the United States 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."

The last year the U.S. was the world's largest producer was 2002, after the Saudis drastically cut production because of low oil prices in the aftermath of 9/11. Since then, the Saudis and the Russians have been the world leaders.

The United States will still need to import lots of oil in the years ahead. Americans use 18.7 million barrels per day. But thanks to the growth in domestic production and the improving fuel efficiency of the nation's cars and trucks, imports could fall by half by the end of the decade.

The increase in production hasn't translated to cheaper gasoline at the pump, and prices are expected to stay relatively high for the next few years because of growing demand for oil in developing nations and political instability in the Middle East and North Africa.

Still, producing more oil domestically, and importing less, gives the economy a significant boost.

The companies profiting range from independent drillers to large international oil companies such as Royal Dutch Shell, which increasingly see the U.S. as one of the most promising places to drill. ExxonMobil agreed last month to spend $1.6 billion to increase its U.S. oil holdings.

Increased drilling is driving economic growth in states such as North Dakota, Oklahoma, Wyoming, Montana and Texas, all of which have unemployment rates far below the national average of 7.8 percent. North Dakota is at 3 percent; Oklahoma, 5.2.

Businesses that serve the oil industry, such as steel companies that supply drilling pipe and railroads that transport oil, aren't the only ones benefiting. Homebuilders, auto dealers and retailers in energy-producing states are also getting a lift.

IHS says the oil and gas drilling boom, which already supports 1.7 million jobs, will lead to the creation of 1.3 million jobs across the U.S. economy by the end of the decade.

"It's the most important change to the economy since the advent of personal computers pushed up productivity in the 1990s," says economist Philip Verleger, a visiting fellow at the Peterson Institute of International Economics.

The major factor driving domestic production higher is a newfound ability to squeeze oil out of rock once thought too difficult and expensive to tap. Drillers have learned to drill horizontally into long, thin seams of shale and other rock that holds oil, instead of searching for rare underground pools of hydrocarbons that have accumulated over millions of years.

To free the oil and gas from the rock, drillers crack it open by pumping water, sand and chemicals into the ground at high pressure, a process is known as hydraulic fracturing, or "fracking."

While expanded use of the method has unlocked enormous reserves of oil and gas, it has also raised concerns that contaminated water produced in the process could leak into drinking water.

The surge in oil production has other roots, as well:

- A long period of high oil prices has given drillers the cash and the motivation to spend the large sums required to develop new techniques and search new places for oil. Over the past decade, oil has averaged $69 a barrel. During the previous decade, it averaged $21.

- Production in the Gulf of Mexico, which slowed after BP's 2010 well disaster and oil spill, has begun to climb again. Huge recent finds there are expected to help growth continue.

- A natural gas glut forced drillers to dramatically slow natural gas exploration beginning about a year ago. Drillers suddenly had plenty of equipment and workers to shift to oil.

The most prolific of the new shale formations are in North Dakota and Texas. Activity is also rising in Oklahoma, Colorado, Ohio and other states.

Production from shale formations is expected to grow from 1.6 million barrels per day this year to 4.2 million barrels per day by 2020, according to Wood Mackenzie, an energy consulting firm. That means these new formations will yield more oil by 2020 than major oil suppliers such as Iran and Canada produce today.

U.S. oil and liquids production reached a peak of 11.2 million barrels per day in 1985, when Alaskan fields were producing enormous amounts of crude, then began a long decline. From 1986 through 2008, crude production fell every year but one, dropping by 44 percent over that period. The United States imported nearly 60 percent of the oil it burned in 2006.

By the end of this year, U.S. crude output will be at its highest level since 1998 and oil imports will be lower than at any time since 1992, at 41 percent of consumption.

"It's a stunning turnaround," Burkhard says.

Whether the U.S. supplants Saudi Arabia as the world's biggest producer will depend on the price of oil and Saudi production in the years ahead. Saudi Arabia sits on the world's largest reserves of oil, and it raises and lowers production to try to keep oil prices steady. Saudi output is expected to remain about flat between now and 2017, according to the International Energy Agency.

But Saudi oil is cheap to tap, while the methods needed to tap U.S. oil are very expensive. If the price of oil falls below $75 per barrel, drillers in the U.S. will almost certainly begin to cut back.

The International Energy Agency forecasts that global oil prices, which have averaged $107 per barrel this year, will slip to an average of $89 over the next five years - not a big enough drop to lead companies to cut back on exploration deeply.

Nor are they expected to fall enough to bring back the days of cheap gasoline. Still, more of the money that Americans spend at filling stations will flow to domestic drillers, which are then more likely to buy equipment here and hire more U.S. workers.

"Drivers will have to pay high prices, sure, but at least they'll have a job," Verleger says.

---

Post Comment   Private Reply   Ignore Thread  


[Home]  [Headlines]  [Latest Articles]  [Latest Comments]  [Post]  [Mail]  [Sign-in]  [Setup]  [Help]  [Register] 

Please report web page problems, questions and comments to webmaster@libertysflame.com