The U.S. has become the world's largest oil producer as predicted, surpassing both Russia and Saudi Arabia.
The U.S. has topped Saudi Arabia as the world's largest oil producer, energy consultancy PIRA said on Oct. 15. U.S. output is expected to average 12.1 million barrels per day of oil, natural gas and biofuels by year's end. The U.S. has received a big boost from shale deposits tapped since 2009.
For the first time since 1995, the U.S. extracted more oil from its own soil in October 2013 than it imported that month, according to a Nov. 12 report from the Energy Information Administration.
"[The U.S.] growth rate is greater than the sum of the growth of the next nine fastest growing countries combined and has covered most of the world's net demand growth over the past two years…The U.S. position as the largest oil supplier in the world looks to be secure for many years." PIRA Energy Group
Saudi Arabia's oil minister, Ali al-Naimi, said in April that the resurgent U.S. energy sector is "good news." But he also said "talk of ending reliance is a naive, rather simplistic view" that "fails to recognize the interconnected nature of global energy markets."
U.S. energy production has risen dramatically in recent years, as reflected in this graph of U.S. energy exports through 2011 from the Energy Information Administration. Saudi Arabia and Russia both top the U.S. in crude oil production.
"This is a remarkable turn of events. This is a new era of thinking about market conditions, and opportunities created by these conditions, that you wouldn't in a million years have dreamed about." Adam Sieminski, head of the U.S. Energy Information Administration
Americans currently consume 38.8% domestic oil and import 19.6% of their oil from Latin America, 15.1% from Canada and 12.9% from the Gulf states. Analysts say more domestic oil buffers against market volatility, but imports guard against natural disaster disruptions.
"The United States, which currently imports around 20% of its total energy needs, becomes all but self-sufficient in net terms — a dramatic reversal of the trend seen in most other energy-importing countries." International Energy Agency
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