A New Chapter in the U.S. Energy Revolution
Posted January 18, 2019
The new Short-Term Energy Outlook from the U.S. Energy Information Administration (EIA) details the vigor of American crude oil production and strengthening U.S. energy security. This is good news for the economy, consumers and America's place in the world. Consider:
- EIA estimates U.S. crude oil production averaged 10.9 million barrels per day (b/d) in 2018, an increase of 1.6 million b/d over 2017. EIA says production reached its highest level and had its largest volume growth on record.
Increased crude oil production from tight rock formations within the Permian region in Texas and New Mexico accounts for 0.6 million b/d of the U.S. total growth expected by EIA in 2019, and 0.5 million b/d in 2020. The remaining increase comes from the Bakken, Eagle Ford, Niobrara, and Anadarko regions and also from the Federal Gulf of Mexico.
U.S. production elicited this from the International Energy Agency in its monthly oil market report:
[T]he US, already the biggest liquids supplier, will reinforce its leadership as the world's number one crude producer. By the middle of the year, US crude output will probably be more than the capacity of either Saudi Arabia or Russia.
Think about the point on capacity, near the end of the paragraph above. Previously, U.S. oil leadership came with an asterisk – while the U.S. led the world in production, it was primarily because others were choosing not to produce at full capacity. This truly is a new chapter in the U.S. energy revolution.
- EIA estimates crude oil and petroleum products net imports fell to an average of 2.4 million b/d in 2018, from 3.8 million b/d in 2017 – and 12.5 million b/d in 2005.
- EIA forecasts that net imports will keep declining this year, to an average of 1.1 million b/d and to less than 0.1 million b/d in 2020. EIA forecasts that in the fourth quarter of 2020, the United States will be a net exporter of crude oil and petroleum products by about 0.9 million b/d.
EIA Administrator Linda Capuano:
“Steady growth from non-OPEC countries, including the United States, headlines the forecast for global crude oil production through 2020. We expect the United States to remain the world’s largest producer. … EIA sees global oil markets in relative balance over the next two years with U.S. production growth more than offsetting declining production from OPEC, and some non-OPEC countries, due to last month’s announced production cuts.”
Again, EIA’s report and forecast suggest another big important year for U.S. energy. The United States leads the world in natural gas and oil production, which means opportunity and security for the nation. America has the energy to grow economically, to innovate and create and to achieve goals here at home and around the world. Producing more of the natural gas and oil domestically means less dependence on others and greater energy security. API President and CEO Mike Sommers, at API’s State of American Energy Event:
“[W]e are a world away from an era when our entire economy seemed to depend on the changing moods and interests of an oil cartel. There are days when the United States actually exports more oil than some OPEC nations produce. So in global energy markets, we’re playing with a very different hand, to the advantage of this country and many others.”
Stable, affordable energy drives economic growth and strengthens our energy security. Read about the policies and initiatives that will help support and expand the energy revolution in API’s annual report, “America’s Generation Energy.”
About The Author
Mark Green joined API after a career in newspaper journalism, including 16 years as national editorial writer for The Oklahoman in the paper’s Washington bureau. Previously, Mark was a reporter, copy editor and sports editor at an assortment of newspapers. He earned his journalism degree from the University of Oklahoma and master’s in journalism and public affairs from American University. He and his wife Pamela have two grown children and six grandchildren.