by Jason Hopkins
The United States is expected to churn out far more oil in 2019 than what international analysts originally forecasted.
The International Energy Agency, a Paris-based organization that helps coordinate energy policies for industrial countries, released its latest oil market report Friday, noting exceptional numbers for the U.S. fossil fuel industry.
The agency reported U.S. oil production is expected to rise by 1.3 million barrels a day in 2019. While this number is lower than the record-smashing 2.1 million increase producers enjoyed in 2018, it’s more than double what the IEA initially expected to see in 2019.
The forecast illustrates the latest in the country’s shale oil boom, which has experienced unprecedented growth in recent years thanks to the emergence of hydraulic fracturing and an administration that has fostered a more conducive environment for fossil fuel development. Already, the U.S. is the largest international crude oil producer, with output expected to top 12 million barrels per day in 2019 and reach 12.9 million by 2020, according to the Energy Information Administration’s latest report.
Analysts predict the U.S. will keep blowing past its global competitors.
“By the middle of the year, US crude output will probably be more than the capacity of either Saudi Arabia or Russia,” read a portion of EIA’s report, meaning it expects American companies to churn out more oil than what Saudi Arabia or Russia are even capable of producing.
President Donald Trump hailed the U.S. energy boom as glaring proof he isn’t secretly in cahoots with the Russian government — a conspiracy theory long repeated by his critics.
“‘Gas prices drop across the United States because President Trump has deregulated Energy and we are now producing a great deal more oil than ever before,’” the president tweeted Monday, attributing the quote to “Fox and Friends.” “But this is bad news for Russia, why would President Trump do such a thing? Thought he worked for Kremlin?”
The Russian economy — which is entirely dependent on its energy exports — stands to lose with increased global production, which ultimately lowers the price of oil.
The IEA went on to say that, even if global economic growth slows, oil demand will continue to rise.
“Our expectation for slightly faster global demand growth in 2019 is maintained even though economic growth is likely to be slower than in 2018,” the agency told Bloomberg. “The impact of higher oil prices in 2018 is fading, which will help offset lower economic growth.”
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Jason Hopkins is a reporter for the Daily Caller News Foundation. Follow Jason on Twitter.
Photo “Oil Well” by Maarten Heerlien. CC BY 2.0.
[…] The forecast illustrates the latest in the country’s shale oil boom, which has experienced unprecedented growth in recent years thanks to the emergence of hydraulic fracturing and an administration that has fostered a more conducive environment for fossil fuel development. Already, the U.S. is the largest international crude oil producer, with output expected to top 12 million barrels per day in 2019 and reach 12.9 million by 2020, according to the Energy Information Administration’s latest report. Read More > in The Tennessee Star […]
[…] The Tennessee Star: US Oil Boom Is Defying Expectations, Experts Say […]
[…] The Tennessee Star: US Oil Boom Is Defying Expectations, Experts Say […]
“US Oil Boom Is Defying Expectations, Experts Say”
In other words, the experts aren’t.
But Obama said we couldn’t drill our way out… Obama also said something about gas was going to have to be more expensive too…
Less money for the $#it Hole countries – win-win
How about doing a little research and fact checking? Isn’t that what the “news” is supposed to do? Inform the public?
The Russian economy is not “entirely dependent on energy exports” as this article states. Russia has a thriving arms industry, designs and builds nuclear and conventional power plants, dams, bridges and other elements of major infrastructure worldwide, designs and manufactures powerful and sophisticated computers, designs and builds world class agricultural equipment, heavy trucks and Earth moving machinery, and so on. Energy exports is a major component of their economy, yes, absolutely – and they use that status to apply political pressure to the countries that are dependent on those imports – but energy is hardly the only one.
Another fact that this article completely ignores is that the American consumer is not as sensitive to the price of oil as he is to the supply. This was proven during the 1973 oil embargo. So before we throw a party celebrating how quickly and efficiently we are depleting our domestic reserves, think about our degree of dependence on imports today and what our future holds. Despite the fact that we are now the world’s leading producer, we are also the world’s leading consumer and importer. Yet, we are exporting our own supplies while simultaneously financially supporting countries that hate us by importing theirs? That’s a pig stupid strategy.