In the news today, America is on the decline as the economic and global superpower. However, our production of oil was always a weakness for the United States, and no one would thought several years ago that America would find new sources to extract and produce oil to increase production but increase production to rise as the Global Oil Superpower. In all our decline, America can accomplish anything if we work together and put our minds to accomplishing a task. It was 1970 since we produced 10 million barrels of oil per month and we are now passing the levels of production from 1970 after 48 years.
Unconventionals Lead American Oil Resurgence
Permian power: How Texas has U.S. close to passing Saudi Arabia and Russia in oil production
With the help of Texas and the Permian Basin, the U.S. is playing a more prominent role in global crude oil production.
A decade ago, the U.S. was a distant No. 3 in oil production. It’s still at three, but now it’s just barely behind Saudi Arabia and Russia. And it’s poised to take over the top spot.
Growing U.S. production has kept a lid on OPEC efforts to push oil prices higher with production cuts. U.S. oil production is expected to continue moving the global oil market in ways few others can.
Texas dominates the oil market
The Lone Star State produces three times more crude oil than its closest competitor.
“Our base estimate is that Texas accounts for three-quarters of U.S. growth next year. We’re looking at 750,000 barrels of new production in 2018 out of the Permian Basin. When you consider that demand growth for crude globally is going to be [an additional] 1.3 million barrels a day … you can’t ignore the role Texas is playing.”
Reed Olmstead, director of commercial plays and basins for IHS Markit
Texas oil in a wild upswing
The expansion of fracking in the Oil Patch fueled the boom in Texas and the Permian Basin.
International crude oil production
Experts project that the U.S. could pass Russia and Saudi Arabia as the world’s top oil producer as soon as this year. A decade ago, the U.S. was in the second tier of the world’s oil producers.
“What these good people have been able to do out west and in other places is produce [crude oil] even at prices in the $40s. … So long as we stay where we are right now — a little higher or a little lower — I think the projections are likely to be borne out.”
Ehud Ronn, co-director of the Energy Management and Innovation Center at the University of Texas at Austin
The U.S. is projected to increase oil production by more than 3 million
barrels per day by the end of 2023.
“It’s difﬁcult to see oil prices go much higher while the U.S. continues to cover the world’s increasing demand for crude almost single-handedly. The International Energy Agency is forecasting that the U.S. will account for 80 percent of the world demand growth in the next three years.”
Jeff Mosier, staff writer, The Dallas Morning News
SOURCES: U.S. Energy Information Administration; IHS Markit; DMN research
Shale oil has put America on the path to a Oil Superpower. The crash price of 2014 almost crushed the shale industry, but the advance of technology and cost effective strategies have made the industry alive again along with the stabilization of oil prices. The flood of oil has many worried about deflation in prices but two factors will continue to evolve as Venezuela has the largest oil reserves on the planet and was a major exporter of oil but due to an economic collapse and aging infrastructure has seen a crash in oil production offsetting America’s influx of oil. Second, the geopolitical situation in the Middle East may seem to have calmed down for the moment. Syria is still a flashpoint and war with Israel and Iran are a reality with Iran building a presence in Syria.
America seems to be a tired superpower and our society has lost their desire to invest in the fundamentals in personal responsibility and accountability along with our responsibility as citizens to be involved and amicable and work together to protect our freedoms not to be polarized like animals protecting their pack. The resurgence of America as a global player in energy dominance and our path to energy independence may have geopolitical consequences. However, it is a sign of the power of America in it’s core principles to succeed and be number one when we all work together.
It is almost an oxymoron as we lose our role as a superpower globally. We are the rising energy superpower.