According to top industry monitor IEA (International Energy Agency), the United States is on its path to overtake Russia as world’s largest oil producer. By 2023, the US oil production is expected to hit 12.1 million barrels per day. The current US oil production is 10.6 million barrels per day, while Russia, which is holds the title currently as the world’s biggest oil producer, has an 11 million barrels per day output.
As per an official statement made on Monday by IEA Executive Director Fatih Birol:
“The No. 1 overall message, non-OPEC supply growth is very, very strong, which could change the parameters for the oil markets in the years to come, led by the United States, but also Brazil, Canada and Norway.”
The five year forecast made by the IEA is based on US technological developments in oil/gas extraction, which led to a boom in domestic oil and natural gas production. The slight recovery in oil prices also played a role in encouraging companies to increase drilling, together with improved efficiency and a business-friendly environment under Trump’s presidency. The US was until recently heavily dependent on Middle East oil imports, but now it’s getting closer to become energy independent, i.e. by 2023, the US will extract/refine enough crude to meed domestic demand for gasoline.
Also, the US is expected to become a top exporter of oil by 2023, with the IEA forecasting a 4.9 million barrels per day, which is more than double compared to today’s oil exports. Until 2015, the US was now allowed to export crude oil by law. Saudi Arabia’s output capacity by 2023 is expected to hit 12.3 million barrels a day, but we must keep in mind the Saudis are known for pumping well below their top capacity, in order to maintain their leverage as a swing supplier, so they can increase or decrease oil exports to meet markets’ demands. With China set to become world’s largest economy in the next years, hence the world’s oil demand will keep growing, which is great news for the industry.
Remember that Barry Obama told us we could not drill our way to more oil or lower oil prices. And Hillary Clinton told us that she was going to shut down fracking as soon as she was elected. Now, how many tens of billions of dollars are not flowing to people who want to kills us because we didn’t listen to those experts?
And speaking of clueless leftists, the consensus forecast from 40 years ago was that the US would soon run out of oil, and shortly after that the world would freeze in the dark. We should keep in mind how erroneous forecasts can be before we enact legislation and regulations based on forecasts.
If the people predicting peak oil, climate change catastrophe etc. really had any faith in their ability to predict the future, they would all probably be in Las Vegas.