Daily Output of American Oil Close to 12 Million Barrels
Posted: 10/14/2014 12:10:18 Edited: 10/14/2014 01:10:18 Clicks: 2498
It is reported that the U.S. is expected to exceed Saudi Arabia, becoming the largest liquefied petroleum gas producer in this week.
Currently, daily output of American oil has already risen from 8 million barrels in 2011 to almost 12 million barrels (including natural gas liquids, like ethane). Output growth mainly attributes to shale gas revolution. The newest report show that daily output of American oil in 2013 was 7.45 million barrels per day, which was the highest level since 1989.
Financial Times reported that the U.S. rising to become the largest global oil producer played a key role in stabilizing market. In the past few years, American oil output growth had prevented effectively oil price from surging due to production reduction in other oil suppliers. It was also another reason that international oil price had obvious oil price descending trend. Last week, it was the first time that oil price was lower than 90 dollars per barrel while oil price was maintained at 115 dollars per barrel in June.
Relative cheap energy price is another important factor to support American economic recovery. Michael Weber, the Vice Director of Energy Research Institute of University of Texas at Austin expressed that economic effects brought by cheap energy price could be considered as tax reduction. American consumers’ cost on energy decline increased other consumption expenditures accordingly.
Weber also said, “Shale revolution is advantageous for the U.S. remodeling global energy structure.” The Times reported that American oil output growth weakened the pricing power of OPEC, especially Saudi Arabia.
The influences on global geopolitics and security caused by American price power enhancing began to edge up. Although the U.S. does not abandon the Middle East due to oil import reduction, voice that requests to reduce military presence in the region has already appeared in the U.S.
Currently, daily output of American oil has already risen from 8 million barrels in 2011 to almost 12 million barrels (including natural gas liquids, like ethane). Output growth mainly attributes to shale gas revolution. The newest report show that daily output of American oil in 2013 was 7.45 million barrels per day, which was the highest level since 1989.
Financial Times reported that the U.S. rising to become the largest global oil producer played a key role in stabilizing market. In the past few years, American oil output growth had prevented effectively oil price from surging due to production reduction in other oil suppliers. It was also another reason that international oil price had obvious oil price descending trend. Last week, it was the first time that oil price was lower than 90 dollars per barrel while oil price was maintained at 115 dollars per barrel in June.
Relative cheap energy price is another important factor to support American economic recovery. Michael Weber, the Vice Director of Energy Research Institute of University of Texas at Austin expressed that economic effects brought by cheap energy price could be considered as tax reduction. American consumers’ cost on energy decline increased other consumption expenditures accordingly.
Weber also said, “Shale revolution is advantageous for the U.S. remodeling global energy structure.” The Times reported that American oil output growth weakened the pricing power of OPEC, especially Saudi Arabia.
The influences on global geopolitics and security caused by American price power enhancing began to edge up. Although the U.S. does not abandon the Middle East due to oil import reduction, voice that requests to reduce military presence in the region has already appeared in the U.S.
