As Russia is struggling to continue its current energy output, the U.S. is all set to become a leader in energy production. According to the federal Energy Information Administration (EIA) the U.S. has been able to increase its petroleum products to 7 quadrillion Btu since 2008. Here leading producers are Texas and North Dakota which are bringing up record output.
The EIA discloses that natural gas production has increased by 3 quadrillion Btu over the same period; here major contributor is the eastern United States. The country is also catching up in the race to pump crude i.e. earlier there was the gap of three million barrels a day, now Russia’s average of 10.8 million barrels of oil is merely 900,000 barrels a day more from the Americans.
Increasing Crude Production
Decreasing gap between the Russian crude production and the U.S. crude production is attributed to increasing crude production from two of the hottest plays in the U.S. e.g. the Bakken oil field in North Dakota and the Eagle Ford shale formation in South Texas. The two centers are pumping record crude and helping the U.S. compete with the Russian crude production.
Moreover, as the Russian government is predicting that oil output will remain flat through 2016, the U.S. has higher chances of toppling it from the top position. According to the data from the EIA, the country produced the equivalent of about 22 million barrels a day of oil, natural gas and related fuels in July and expected to increase it further.
Implications of Oil Boom
Oil boom in the U.S. has generated a lot of jobs; however, it has also come with traffic and concerns about pollution and sustainability. According to some analysts, the oil boom will help the country manage trade deficit as they say that the U.S. imports of natural gas and crude oil have fallen 32% and 15%, respectively. It may also influence its foreign policy which has been dictated by its energy requirements.
Oil boom in the U.S. has great implications for other leading oil consumers in the world like China and India. These two leading economies are energy starved and depend a lot on imported oil; however, that the U.S. imports less oil from the Middle East, a lot of oil will be available for these countries that will in turn help them manage their energy requirements.
To contact the reporter of this story: Jonathan Millet at email@example.com