US may become largest oil producer in 2013
Production growth from shale deposits in North Dakota and elsewhere is boosting US output ahead of Saudi Arabia's and Russia's, BP says. The US should be basically self-sufficient by 2030.
Yes, according to British oil giant BP (BP). The company's Energy Outlook for 2030 report projects that the U.S. will move past Saudi Arabia and Russia this year in terms of energy liquids production. That's crude oil and biofuels. And the U.S. is likely to hold on to that position for 10 years until 2023.
The reason for the production gains is the emergence of "tight oil," which is how the industry terms what's coming from shale deposits such as the Bakken shale in North Dakota and Montana as well as in Texas and Louisiana.
Moreover, the report says, the United States will become "nearly self-sufficient in energy" by 2030, while India and China will become increasingly dependent on energy imports.
Global energy demand will grow 1.6% a year -- 36% overall by 2030. The global population will grow by 1.3 billion to roughly 8.3 billion. Most of that demand will be met by increased production from the U.S., Canada and Brazil.
The one downside is that people should probably not expect much change in gasoline pump prices.
Crude oil is expected to be the slowest-growing fuel over the next 20 years, but it will be supplemented by biofuels and other liquids.
U.S. oil and gas production has grown rapidly in the past few years because fracking -- the blasting of water and chemicals into rocks deep underground -- has unlocked millions of barrels of crude oil and natural gas. Daily U.S. oil production rose more than 14% in 2012 and is expected to rise an additional 14% in 2013 and 8.2% in 2014.
Thanks to fracking, North Dakota, which produced little oil a decade ago, is now the second-largest-producing state.
The increases in natural gas supplies has pushed prices for the fuel substantially lower.
If the U.S. is going to see sizable energy gains, what about production from the Organization of Petroleum Exporting Countries?
Look for production declines, BP says, because global supplies are so large. In fact, Saudi Arabia, which has the most spare production capacity, cut production back in December. That's been a big reason crude oil in New York rose 9.3% from about $86 a barrel in early December to $95 a barrel as of Thursday.
China has large potential reserves of shale oil and gas, the report said, but it lacks the key factors that have combined to set off the recent energy boom in the western U.S. and Canada: large fleets of drilling rigs, sophisticated financial markets, a favorable fiscal regime and private ownership of reserves.
More on Money Now
- Love energy drinks? See you in the ER
- 9 ways feds bungled foreclosure crisis
- Forget the flu: Sydney vomiting bug is here
Saudi Arabia has two price ranges. For domestic consumption the rate is very low, but for the export the price is very high and that is why they make huge profit.
I wish our government will think on the same line.
Yes, indeedy! Try and make sense of any of this oil pricing. The more we produce the more OPEC cuts back and the higher the prices. The less demand the lower the prices until oil producers start cutting back and then causing prices to inflate. It doesn't matter if the U.S. out produces the rest of the world that isn't going to affect our cost at the pump in this life time.
I say let's go back to the camel....We can keep him going on water.
Copyright © 2013 Microsoft. All rights reserved.
Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.
Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Financial Information.
The company tries to tamp down criticism from activists who argue that the mascot promotes childhood obesity.
- Oklahoma senators change tune on disaster relief
- At software giant SAP, autism is an asset
- Mike Bloomberg's next career: Taxi magnate?
- Shotgun wedding for Saks and Neiman Marcus?
- Charles Ramsey gets burgers for life, but no Big Macs
- New Jersey bar sting turns up 'swill'
- Mike's Hard Lemonade goes after male drinkers
- Big job gains expected next year, economists say
- Yum aims to fatten up by doubling Taco Bell sales
[BRIEFING.COM] The major averages ended modestly lower with the S&P 500 shedding 0.3%.
The benchmark average saw an opening loss of 1.2% after Japan's Nikkei tumbled 7.3%. Japanese stocks sold off amid continued volatility in Japanese Government Bond futures as the 10-yr yield spiked almost 16 basis points to 1.002 before the Bank of Japan's JPY2 trillion liquidity injection caused yields to retrace their gains.
Adding insult to injury was news out of China where the HSBC ... More
More Market News
In the never-ending contest for sales, American carmakers are pulling ahead.