The larger-than-expected surge in North American oil volumes has come primarily from the Permian, Canada's oil sands, and more recently, the Gulf of Mexico.
Notably, this surge in North American oil production is only set to accelerate, and according to Bank of America forecasts US crude oil volumes alone will exceed 12MM b/d in 2019. It is this sky high production in the US, coupled with incremental barrels coming from Saudi Arabia and Russia, that together with the Iran wildcard is starting to impact oil market balances. As such, crude oil inventories are starting to increase once again and has led to the recent bear market in oil prices.
This is a joke... right? The US uses 19MB of curde per day, and only produces 12MB per day. These headlines that tout "energy or oil independance" are laughable... just go to the IEA information and look it up. The real stat is "crude oil"... not all of the other stuff that is sometimes used to promote so called energy independance. We will be in the Middle East a long time fighting for "our" fair share of the planet's oil.
ReplyDeleteSadly, true. The US really needs to up its nuclear game if they want true independence, and start to slowly let the market guide liquid petroleum usage toward air travel, train traffic, plastics manufacture, and most important, ethanol-free high test for muscle cars.
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