|America is Now an Energy Powerhouse|
|keywords: Energy Powerhouse American Energy natural gas|
In recent years, the US has been consolidating its global position as an energy powerhouse. In the latter half of 2018, the country became the largest crude oil producer in the world.
With each passing year, exports of natural gas, crude oil, and oil products have been increasing significantly, making it clear that the movement “keep it in the ground” is no longer in focus. Well, it is too loony tune liberals.
In August 2018, crude oil production in the US reached 10.8 million barrels a day – which was twice the amount of 5 million barrels a day in 2008.
This output helped America exceed Saudi Arabia in crude oil production in February of 2018. By August 2018, US production managed to surpass that of Russia, making the country world’s largest petroleum producer.
The natural gas production in America has increased by a whopping 40% from 2007 to 2017. And in 2011, the US replaced Russia as the largest producer of natural gas in the world.
Credit goes to the Hydrofracturing Revolution in the US
This incredible domination in the energy sector is courtesy of the hydrofracturing revolution – a process perfected by American petroleum engineers and geologists.
Over the last 2 decades, the techniques of horizontal drilling and hydraulic fracturing have vastly improved, allowing the country to extract oil and gas from low-penetrability shale rock formations in the most cost-effective way.
The American companies are 10 years ahead in experience when it comes to shale extraction techniques as the international competitors are still figuring out the technology.
This is a really incredible achievement considering in 2000, just 7% of American natural gas came from wells that were hydraulically fractured. As of today, approximately 70% of gas production and more than 50% of crude oil production in the US is generated from fractured wells.
The technology also referred to as “fracking”, is active in more than 20 US states at this point.
Increase in Exports, Mexico is Biggest Consumer
Production isn’t the only thing growing considerably; the US gas and oil exports are exploding too. The country’s exports of petroleum products grew by a factor of 5 between the years 2004 and 2017. In 2011, America became a net exporter of refined petroleum products for the first time in history.
The largest customer of the US natural gas has been Mexico since 2017.
LNG export terminal began operating in 2018 at Cove Point in Maryland. However, the Sabine Pass terminal became active much before in 2016. By 2020, four more Liquefied Natural Gas Terminals are set to begin operations.
Before 2010, America was a net importer of propane, which is a hydrocarbon fuel used for the purposes of cooking and heating. However, the country’s propane production has doubled within the last 9 years and now the US is exporting nearly 1 million barrels a day.
Boost to the Economy and Balance of Trade
One of the strategic advantages of US energy domination is an enhanced balance of trade in the energy sector. US energy imports surpassed exports by $325 billion in 2011.
Then in 2017, with rapidly rising production of gas and oil exports, the American trade imbalance in energy dropped to $57 billion. The US economy is quickly advancing thanks to the country’s resurgence in energy production.
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