During the 1970s, America’s oil production, including natural gas, seemed to have reached their peaks. We were producing around 9.6 million barrels per day (bpd) of crude oil and around 21.7 trillion cubic feet of natural gas. By 2005, we were producing about 5.2 million bpd of crude, and our import levels had reached 10.1 million bpd, or roughly just under half of what we were consuming.
Oil Production -More going out than ever before
These days we still import oil, but the increases in our production have brought imports down. We are importing 1.9 million bpd less than the same time last year. And, most importantly, we have started exporting. Crude oil exports from America to Oceania and Asia have increased 58%, to Western Europe increased 66% and to the Netherlands increased 192% from the same period last year. The U.S. Department of Energy is reporting we will become a net exporter of oil on an annual basis for the first time ever.
Natural Gas – Skeptics always have much to say
Skeptics say, and have been saying, the good times won’t last. They predict a decline in output because of lower oil prices. It hasn’t happened yet. But, will it happen? It doesn’t look like it, at least not during the foreseeable future.
Let’s listen to the experts instead!
Rystad Energy, an independent energy consulting service headquartered in Norway, believes the U.S. shale industry will continue growing even if prices continue dropping for years. “In spite of the decline in spending and activity levels, the North American shale supply is not following the downward trend,” says a Rystad representative.
The International Energy Agency has come to the same conclusion. In November, they reported the U.S. will supply 85% of new oil and 30% of new natural gas through 2030.
U.S. oil production began rising in 2008, with the shale boom, and it hasn’t looked back. From 2008 to 2015, the United States saw the fastest oil production increase in history. Even with recent decreases in activity and rig counts, production continues rising. In the 2020s, the state of Ohio is expected to add as much oil and natural gas to the global supply as Russia. And Pennsylvania is expected to supply more oil and natural gas than any other country, with the exception of Canada.
More is more
We have reached energy independence, and there is no reason why we should stop there. When it comes to oil production, including natural gas, less is not more: more is more. And with the increase in industry technology, we will continue to have more and produce more no matter where prices go from here.
