International [Oil & Gas News] America Achieved Energy Independence As The World's Top Oil Producer (2018-2019)

Oil prices are sinking today as OPEC and Russia look to raise output
Ahmad Ghaddar | May 28, 2018

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Oil prices extended losses on Monday as Saudi Arabia and Russia said they may increase supplies while U.S. production gains show no sign of slowing.

Brent crude futures stood at US$75.22 a barrel at 1526 GMT, down US$1.22 from the previous close. The contract touched a three-week low of US$74.49 earlier in the session.

U.S. crude futures were at US$66.49, down US$1.39, after hitting a six-week low of US$65.80.

The spread between the two contracts reached US$9.38 a barrel, its widest since March 2015.

Trading was light due to public holidays in the United States and United Kingdom.

The Organization of the Petroleum Exporting Countries (OPEC) and other producers led by Russia began withholding 1.8 million barrels per day (bpd) of supplies in 2017 to tighten the market and prop up prices that in 2016 fell to their lowest in more than a decade at less than US$30 a barrel.

Prices have soared since the start of the cuts last year, with Brent breaking through US$80 this month, triggering concerns that high prices could crimp economic growth and stoke inflation.

“The pace of the recent rise in oil prices has sparked a debate among investors on whether this poses downside risks to global growth,” Chetan Ahya, chief economist at U.S. bank Morgan Stanley, wrote in a weekend note.

To address potential supply shortfalls Saudi Arabia, the de facto leader of OPEC, and top producer Russia have been in talks about easing the cuts and raising oil production by 1 million bpd.

Russian Energy Minister Alexander Novak said a return to October 2016 production levels, the baseline for the current supply pact, was one option for easing curbs.

“Given that our crude balance is short some 825,000 bpd over (the second half of the year), a gradual increase of about 1 million bpd would probably limit stock draws to quite some extent,” Vienna-based consultancy JBC Energy said.

Meanwhile, surging U.S. crude production showed no sign of abating as drillers continued to expand their search for new oilfields to exploit.

U.S. energy companies added 15 rigs looking for new oil in the week ending May 25, bringing the rig count to 859, its highest since 2015, in a strong indication that American crude production will continue to rise.

U.S. crude output has already surged by more than 27 per cent in the past two years, to 10.73 million bpd, ever closer to Russia’s 11 million bpd.

http://business.financialpost.com/c...today-as-opec-and-russia-look-to-raise-output
 
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The U.S. Could Soon Reclaim the World's Oil Crown
By Lucas Laursen | July 12, 2018

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It’s a gusher.

U.S. oil production could reach 11.8 million barrels a day next year, the U.S. Energy Information Administration predicts in its July short-term energy outlook. That would make it the world’s biggest oil producer, ahead of Saudi Arabia and Russia, for the first time since the mid-1970s.

As a result, American oil imports could drop as low as 1.6 million barrels a day, which would be the lowest level since 1958.

America’s massive production capacity has helped it reshape the world energy market and given it diplomatic leverage. Late last month, for example, the U.S. asked Saudi Arabia to produce more oil to stabilize global energy prices. Iran’s OPEC representative complained that the effort undermined OPEC members, which include Saudi Arabia.

Russia and Saudi Arabia produced around 10 million barrels a day last year, the Associated Press reports. So if they do raise production by next year, they could keep pace with the U.S.



The American oil and gas boom of the last decade is a product of its decades-old investment in unconventional drilling technology, such as fracking. Oil wells now send drills horizontally through weak layers in rock and sediment to search for previously inaccessible reserves. Such techniques can break open underground rock and release more oil and natural gas.

But analysts warned last week that underinvestment in new exploration could drive prices higher than the 2008 record of $150 a barrel. Another factor for pricing is getting all that new production, from places like Texas, through pipelines built in a different era fast enough to satisfy growing global demand.

Still, the EIA predicts that Brent crude oil prices will drop to $69 a barrel next year, from an estimated $73 a barrel this year.

http://fortune.com/2018/07/12/us-oil-production-forecast/
 
U.S. is on track to become the world's biggest oil producer
CBS/AP July 13, 2018

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The U.S. has nosed ahead of Saudi Arabia and is on pace to surpass Russia to become the world's biggest oil producer for the first time in more than four decades.

The latest forecast from the U.S. Energy Information Administration predicts U.S. output will grow next year to 11.8 million barrels a day.

"If the forecast holds, that would make the U.S. the world's leading producer of crude," said Linda Capuano, who heads the agency, a part of the Energy Department.

Of course, Saudi Arabia and Russia could upend that forecast by boosting their own production. In the face of rising global oil prices, members of the OPEC cartel and a few non-members including Russia agreed last month to ease production caps that had contributed to the run-up in prices.

President Donald Trump has urged the Saudis to pump more oil to contain rising prices. He tweeted on June 30 that King Salman agreed to boost production "maybe up to 2,000,000 barrels." The White House later clarified that the king said his country has a reserve of 2 million barrels a day that could be tapped "if and when necessary."

The idea that the U.S. could ever again become the world's top oil producer once seemed preposterous.

"A decade ago the only question was how fast would U.S. production go down," said Daniel Yergin, author of several books about the oil industry including a history, "The Prize." The rebound of U.S. output "has made a huge difference. If this had not happened, we would have had a severe shortage of world oil," he said.

The United States led the world in oil production for much of the 20th century, but the Soviet Union surpassed America in 1974, and Saudi Arabia did the same in 1976, according to Energy Department figures.

By the end of the 1970s the USSR was producing one-third more oil than the U.S.; by the end of the 1980s, Soviet output was nearly double that of the U.S.

The last decade or so has seen a revolution in American energy production, however, led by techniques including hydraulic fracturing, or fracking, and horizontal drilling.

Those innovations — and the breakup of the Soviet Union — helped the U.S. narrow the gap. Last year, Russia produced more than 10.3 million barrels a day, Saudi Arabia pumped just under 10 million, and the U.S. came in under 9.4 million barrels a day, according to U.S. government figures.

The U.S. has been pumping more than 10 million barrels a day on average since February, and probably pumped about 10.9 million barrels a day in June, up from 10.8 million in May, the energy agency said Tuesday in its latest short-term outlook.

According to the Energy Department, the U.S. edged ahead of Saudi Arabia in February and stayed there in March; both trailed Russia.

Capuano's agency forecast that U.S. crude output will average 10.8 million barrels a day for all of 2018 and 11.8 million barrels a day in 2019. The current U.S. record for a full year is 9.6 million barrels a day in 1970.

The trend of rising U.S. output prompted Fatih Birol, executive director of the International Energy Agency, to predict this spring that the U.S. would leapfrog Russia and become the world's largest producer by next year — if not sooner.

One potential obstacle for U.S. drillers is a bottleneck of pipeline capacity to ship oil from the Permian Basin of Texas and New Mexico to ports and refineries.

"They are growing the production but they can't get it out of the area fast enough because of pipeline constraints," said Jim Rittersbusch, a consultant to oil traders.

Some analysts believe that Permian production could decline, or at least grow more slowly, in 2019 or 2020 as energy companies move from their best acreage to more marginal areas.

https://www.cbsnews.com/news/u-s-set-to-become-worlds-top-oil-producer-next-year/
 
I wonder how much more efficient they can get.

And if we were to get serous about pushing technology forward on green energy and efficiency, and push Thorium Salt and Pebble bed nuclear reactors we could really bend over bad actors with big fossil fuel supplies.
 
The USA is NUMBER 1 every year for number of patents. That is what happens when you have individuals instead of collectivist trash,
 
Dan Yergin, IHS Markit vice chairman, provides insight to the global oil markets from the 2018 World Gas Conference in Washington, DC.

 
I wonder how much more efficient they can get.

And if we were to get serous about pushing technology forward on green energy and efficiency, and push Thorium Salt and Pebble bed nuclear reactors we could really bend over bad actors with big fossil fuel supplies.

From the way the market looks, I believe we will bypass clean nuclear tech like Thorium/Molten Salt all together, and jump from Natural Gas power plants to Renewable with Battery Storage in a few years.

Experimental Thorium reactors still cost several billion dollars each, and the the tech wouldn't be perfected for years. No power companies in the U.S want to go that route when our country is once again leading the world in natural gas production, and gas is plentiful at basement prices from coast to coast, which means they will quickly get their investment back.

I'm sure if we look up the list of new power plants set to go on line in the next 5 years, almost all of them are powered by natural gas.
 
The USA is NUMBER 1 every year for number of patents. That is what happens when you have individuals instead of collectivist trash,

lol... nice shot at Venezuala

ouch
 
EIA: Seven Major US Shale Regions To Hit New Production Records
By Julianne Geiger - Jul 17, 2018

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Oil production in the seven most prolific US shale regions will hit new highs next month, according to the Energy Information Administration’s monthly Drilling Productivity Report released on Monday afternoon.

Production in the seven regions is expected to increase by 143,000 bpd in August over July’s 7.327 million bpd, according to the EIA.

The news came not even 24 hours after Wood Mackenzie called peak oil demand in 2036 as electric vehicle sales grow , sending oil prices sharply downward on the news.

At 4:15pm EDT, the WTI benchmark was trading down a staggering 4.10% (-$2.91) at $68.10. Brent crude was trading down even more, at 4.50% (-$3.39) at $71.94.

Of the seven more prolific US regions for oil, the Permian is expected to see the biggest increase, at 73,000 bpd, to reach 3.406 million bpd. If this level of production is realized in August, it would represent about a 400,000 bpd climb since January in the Permian alone.

Increases in unconventional oil in the Eagle Ford is thought to come in a distant second, according to the industry body, at an 35,000-bpd increase to reach 1.436 million bpd.

The EIA’s Drilling Productivity Report also tracks drilled but uncompleted wells, which are seen increasing in number for August by 193 across the seven major regions—164 of which are in the Permian. This figure represents one of the largest monthly increases in recent months. The DUC count is of particular concern in the Permian, which is facing takeaway constraints. Some analysts are concerned, according to S&P Global Platts, that if oil and gas cannot be moved out of the Permian due to these constraints in the Permian, the number of wells in the Permian will need to be “banked” until such capacity is brought online.

https://oilprice.com/Latest-Energy-...le-Regions-To-Hit-New-Production-Records.html
 
To bad oil prices arent sky rocketting down lmao. Call me when we benifit
 
To bad oil prices arent sky rocketting down lmao. Call me when we benifit

Oil and gas prices in your area isn't currently half what it was 10 years ago...?

I still vividly remember the days of $150/barrel oil, $6/gallon premium gas in 2008, when we were still completely relied on OPEC for petroleum.
 
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How modern?


"The earliest description of the process dates to the 10th century. In 1684, Great Britain granted the first formal extraction process patent. Extraction industries and innovations became widespread during the 19th century. The industry shrank in the mid-20th century following the discovery of large reserves of conventional oil, but high petroleum prices at the beginning of the 21st century have led to renewed interest, accompanied by the development and testing of newer technologies."
 
Texas to pass Iraq and Iran as world's No. 3 oil powerhouse

By Matt Egan July 17, 2018: 2:18 PM ET


Don't mess with Texas. It's a global oil superpower.

The shale oil boom has brought a gold rush mentality to the Lone Star State, which is home to not one but two massive oilfields.

Plunging drilling costs have sparked an explosion of production out of the Permian Basin of West Texas. In fact, Texas is pumping so much oil that it will surpass OPEC members Iran and Iraq next year, HSBC predicted in a recent report.

https://money.cnn.com/2018/07/17/investing/texas-oil-iran-iraq-permian-basin/index.html
 
Can someone then explain why my price at the pump keeps going up?
 
BUT MORE THAN DOUBLE WHAT IT WAS 3 YEARS AGO!!!!!! OMG!!!!!!!
https://www.macrotrends.net/1369/crude-oil-price-history-chart

dont cherry pick numbers like that. is disindigenous.

That oil market crash in 2014 took out so many U.S shale companies, who couldn't keep paying their employees while operating at a loss. Why would ANYONE wish the oil market to crash well below U.S shale's break-even point again?

With sustainable oil prices where they are and U.S shale producers are active again, current average gas prices in Texas has stablilized to around $2.50/gallon. That's a price at the pump I'd be glad to live with. Wouldn't you?

However, the very same gas costs a full dollar higher in the West Coast (~$3.50 in Cali), and that massive hike has fuck all to do with already-stabilized oil prices, at least not for us.

So no, I'm not whining about $70/barrel oil prices. Neither should anyone in America. If they're paying a dollar more for every gallon at the pump compare to the neighboring State, they should take a closer look to see how much of that is their State government taxing them up the ass.
 
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