United States to become the world’s largest oil producer
The United States is expected to become the world largest oil producer on or before next year, the Energy Information Administration (EIA) disclosed.
The US ousted Saudi Arabia from the second spot late last year after hitting 10.2 million barrels a day, compared to Saudi Arabia’s production which currently stands just below 10 million barrels a day. This is due to curbs in output as part of a pact between the Organization of the Petroleum Exporting Countries and a group of non-cartel members, aimed at bringing down global crude stockpiles and boost prices.
According to a Report on Reuters, oil production from shale continued to upend global supply patterns putting the United States in a strategic position to become the world’s no. 1 producer.
The U.S. Energy Information Administration said early this month that U.S. output would exceed 11 million bpd by late 2018. That would take it past top producer Russia, which pumps about 10.95 million barrels of oil.
“All the indicators that suggest continued fast growth in the U.S. are in perfect alignment; rising prices leading, after a few months, to more drilling, more completions, more production and more hedging,” the agency said in the report.
U.S. oil is also increasingly being exported, including to the world’s biggest and fastest growing markets in Asia, eating away at OPEC and Russian market share.
Fatih Birol, executive director of the IEA said production growth was not just strong in the United States. “Canada, especially the oil sands, and Brazilian offshore projects are the two major (non-U.S.) drivers,” he added.