U.S. to shortly overtake Saudi Arabia, Russia in production of natural oil
By Catholic Online (NEWS CONSORTIUM)
7/6/2014 (3 years ago)
Catholic Online (www.catholic.org)
The United States has often found itself at the mercy of unstable nations for the majority of its oil imports. That day may soon be past after American begins the extraction of energy from shale rock, eventually overtaking both Saudi Arabia and Russia in oil production. That's the prediction of the Bank of America Corporation.
In Texas and North Dakota, oil extraction is soaring at shale formations as companies split rocks using high-pressure liquid in a process known as fracking.
LOS ANGELES, CA (Catholic Online) - National production of crude oil, along with liquids separated from natural gas in the United States has surpassed all other countries this year with daily output exceeding 11 million barrels in the first quarter. In the report by B of A, the U.S. became the world's largest natural gas producer in 2010. The International Energy Agency said last month that the U.S. was the biggest producer of oil and natural gas liquids.
"The U.S. increase in supply is a very meaningful chunk of oil," Francisco Blanch, the bank's head of commodities research, says. "The shale boom is playing a key role in the U.S. recovery. If the U.S. didn't have this energy supply, prices at the pump would be completely unaffordable."
In Texas and North Dakota, oil extraction is soaring at shale formations as companies split rocks using high-pressure liquid in a process known as fracking. The surge in supply combined with restrictions on exporting crude is curbing the price of West Texas Intermediate, America's oil benchmark. The U.S., the world's largest oil consumer, still imported an average of 7.5 million barrels a day of crude in April.
It's estimated that U.S. oil output will surge to 13.1 million barrels a day in 2019 and plateau thereafter, according to the IEA, a Paris-based adviser to 29 nations. It will hit its peak, and then decline and lose its top-producer ranking at the start of the 2030s, the agency said in its World Energy Outlook in November.
"It's very likely the U.S. stays as No. 1 producer for the rest of the year" as output is set to increase in the second half, Blanch said.
It must be noted that production growth outside the U.S. has been lower than the bank anticipated, keeping global oil prices high, Blanch said.
"The shale production story is bigger than Iraqi production, but it hasn't made the impact on prices you would expect," Blanch adds. "Typically such a large energy supply growth should bring prices lower, but in fact we're not seeing that because the whole geopolitical situation outside the U.S. is dreadful."
Copyright 2018 - Distributed by THE CALIFORNIA NETWORK
Pope Francis Prayer Intentions for FEBRUARY 2018
Say 'No' to Corruption. That those who have material, political or spiritual power may resist any lure of corruption.
Global markets have dropped for the past few days, and just this morning have rebounded. It remains to be seen if the recovery is ... continue reading
The world is richer and more productive than ever before in history. Yet, income inequality is growing the poverty is on the rise. Middle ... continue reading
Income inequality - Here's why world poverty and hunger remain a problem, frustrating Pope Francis' efforts to solve the crisis Watch
When Pope Francis accepted the chair of St. Peter, he pledged to end world hunger by 2020. By all appearances, it was an easy win. The math ... continue reading
Jobless claims historic low! - Why workers are getting raises this year, thanks to President Trump Watch
Say what you will about President Trump, but American workers are starting to "win" under his administration. Jobless claims have reached a ... continue reading
Early reports from the retail sector show that sales between November 1 and Christmas Eve were up 4.9 percent over last year. Workers ... continue reading
by Catholic Online
- St. John Theristus: Saint of the Day for Saturday, February 24, 2018
- 'Living Lent': Tuesday of the Second Week of Lent - Day 14
- 'Living Lent': Monday of the Second Week of Lent - Day 13
- 'Living Lent': Sunday of the Second Week of Lent - Day 12
- The Biblical Seal of Isaiah has been found! HD Video
- Daily Reading for Sunday, February 25th, 2018 HD Video
- Daily Readings for Saturday, February 24, 2018
- The Tragic Reason Mass Shootings Happen, and it's NOT the guns HD
- Daily Reading for Saturday, February 24th, 2018 HD
- Spiritual Warfare and the Help of Angels HD
- St. Lawrence, Deacon and Martyr HD
Learn about Catholic world
Inform - Inspire - Ignite
Catholic Online Saints
Your saints explained
Catholic Online Prayers
Prayers for every need
Catholic Online Bible
Complete bible online
Catholic Online News
Your news Catholic eye
Today's bible reading
Products and services we offer
Catholic Online Shopping
Catholic medals, gifts & books
The California Network
Inspiring streaming service
Learn the Catholic way
Teacher lesson plans & resources
Support Free Education
Tax deductible support Free education