U.S. Becomes the Top Crude Oil Producer in the World

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U.S. Crude Oil - U.S. Becomes the Top Crude Oil Producer in the World

The Energy Information Administration (EIA) recently released the latest Short-term Energy Outlook (STEO) report, saying that the United States has surpassed Russia and Saudi Arabia to become the world’s largest crude oil producer.

Although EIA has not released short-term forecasts for crude oil production in Russia and Saudi Arabia, it is believed that in the remaining months of 2018 and 2019, the U.S. crude oil production will continue to exceed that of Russia and Saudi Arabia.

crude oil production - U.S. Becomes the Top Crude Oil Producer in the World

In the STEO report, the preliminary production estimates indicate that the U.S. average daily crude oil output in August reached 10.9 million barrels. The EIA estimates that the average daily output will reach an average of 11.5 million barrels next year, up from 10.7 million barrels per day (bpd) this year.

Also Read: The U.S. Crude Price Hits Three-Year High in Tight Market

Thanks to the Permian Basin in western Texas, crude oil production in the United States has increased significantly. It will add 31,000 barrels to overall daily production from the current 3.427 million bpd to 3.458 million bpd.

The second largest contributor to the crude oil output growth will be the Eagle Ford, which expects production will increase by 16,000 bpd in October to 1.449 million bpd.

As the United States re-emerges as the world’s largest oil producer, it has reshaped the global energy landscape, and the U.S. crude oil is flowing to the international market.

The Permian Basin is undergoing an “oil” rush mentality, but this boom may quickly run out of oil pipelines, labors and suppliers in the region. Although the local oil production is expected to keep rising, the increase is not as much as previously expected.

Bob McNally, president of Rapidan Energy Group – a consulting firm, said, most oil refineries in the United States were built decades ago and can only absorb light mixed oil from the Permian basin and still require a certain amount of overseas heavy oil. At present, it seems that the United States still relies on foreign crude oil, but the degree of dependence has decreased.

The surge in U.S. crude oil production is mainly due to the development of shale oil mining technology. But the environmental problem of shale oil development is also receiving much attention.

The shale oil and shale gas mining mainly uses hydraulic fracturing method to inject a mixture of chemical substances and a large amount of water and sediment into the underground well with high pressure, and fracture the nearby strata structure to collect oil and natural gas. This suggests that hydraulic fracturing can lead to groundwater contamination and increase the likelihood of an earthquake at the mining site.

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