We're Number 1! | Russell T. Rudy Energy LLC
We hear so much about low energy prices, falling rig counts, and decreasing oil production that it is easy to overlook the fact that the U. S. was still the world’s largest producer of petroleum and natural gas hydrocarbons in 2015. “World Oil” reports that based on U. S. Energy Information Administration (EIA) statistics, liquids production actually increased by 1 million barrels per day (MMbopd) and natural gas by 3.7 billion cubic feet per day (bcfd) last year.
The EIA defines petroleum as liquid fuels which includes crude oil, lease condensate, natural gas plant liquids (NGPL), light (shale) oil, extra heavy oil, biofuels, etc. Crude oil and lease condensate account for about 60% of the total and NGPL another 20%.
The U. S. has been the world’s largest producer of natural gas since 2011, and in 2013 became the world’s largest producer of petroleum hydrocarbons. Since 2012 we have surpassed Russia in total output.
Increased U. S. production in recent years is largely attributable to the shale revolution. While Russia’s liquid petroleum output increased in 2015, natural gas decreased. This was largely a result of falling domestic demand due to an economic downturn and a mild winter.
In spite of falling prices and growing inventories, Saudi Arabia continued to increase liquid hydrocarbon production throughout 2015 in an effort to maintain market share. The desert kingdom’s total petroleum liquid and natural gas production increased by 3% last year, but the U. S. still produced more than twice as much.
Looking ahead, the EIA in its May “Short Term Energy Outlook”, predicts that U. S. liquid hydrocarbon output will drop from 15 MMbopd in 2015 to 14.5 MMbopd this year and next. It also predicts that Russian liquid fuels production will remain stable at about 11 MMbopd through 2017. The report also does not anticipate any drop in Middle East supply during this period.
To read the article in its entirety, please go to http://www.worldoil.com/news/2016/5/23/us-remains-largest-producer-of-petroleum-and-natural-gas-hydrocarbons-eia .
Russell T. Rudy Energy, LLC buys oil, gas and mineral interests nationwide. Please call (800-880-0940), or write (info@rudyenergy.com ) to let us know if you agree, disagree or would just like to comment on this, or any of our posts.
