2012.11.14 14:43
‘Saudi Dakota’ sets more records for oil production in September According to a new report released yesterday by the International Energy Agency (IEA) titled “World Energy Outlook 2012”, the United States is on its way to becoming the world’s largest oil producer. Based on new estimates, the IEA projects that America will surpass the world’s longstanding top oil producer, Saudi Arabia, by the year 2020. What’s behind the surging domestic oil production that has the United States on track to become “Saudi America,” as the Wall Street described it today? Advanced drilling technologies that are tapping into unconventional shale oil deposits get the credit. From the IEA report: “The recent rebound in US oil and gas production, driven by upstream technologies that are unlocking light tight oil and shale gas resources, is spurring economic activity – with less expensive gas and electricity prices giving industry a competitive edge – and steadily changing the role of North America in global energy trade.” From the Wall Street Journal: “The key to this U.S. energy boom has been technological innovation and risk-taking funded by private capital.” When the U.S. does overtake Saudi Arabia as the world’s No. 1 oil producer in the next eight years, a lot of the credit for the increased domestic oil production will have to go to the “Economic Miracle State” of North Dakota. New oil production data released today by the state’s Department of Mineral Resources show that the Peace Garden State set more new monthly records for oil production in September. For the second month in a row, the state produced more than 700,000 barrels of oil per day (bpd), and the 728,494 barrels of daily North Dakota oil in September was another all-time record high (see top chart above). What’s especially impressive is the incredible exponential increase in North Dakota’s oil production over such a short period of time. The state’s oil production has doubled in just the last 16 months, from 364,160 bpd in May of last year to 728,494 in September of this year. Oil coming out of the state’s Bakken Formation is behind the huge increase, as that oil field in western North Dakota now supplies 91% of the state’s oil, up from only 78% of the state’s oil two years ago. Bakken oil output has doubled in just the last 15 months, from 320,435 bpd last June to 662,428 bpd in September (see bottom chart above). At the current pace of production increases, North Dakota’s oil production will surpass one million bpd by the end of next year. And it’s the exponential increases in shale oil production in the Bakken region of North Dakota and the Eagle Ford Shale region of Texas that have the United States on a trajectory to become the world’s largest oil producer in the next eight years. Equally impressive is the fact that the state of North Dakota is now producing more oil for the first time than both the entire national production of Egypt (719,000 bpd) and Argentina (723,000 bpd), based on international oil production data from the Department of Energy for the month of June. Along with the gusher of shale oil in North Dakota has come a gusher of shovel ready jobs and widespread oil-related prosperity. The “Economic Miracle State” continues to lead the nation with the lowest state unemployment rate at 3% in September, at almost five percentage points below the national average of 7.8%. There were 11 North Dakota counties with jobless rates below 2.0% in September, and Williams County, which is at the epicenter of the Bakken oil boom, continues to boast the lowest county jobless rate in the country at just 0.7%. The exponential growth in North Dakota oil production has fueled exponential growth in the state’s oil and gas jobs, which have more than tripled over the last three years. Overall employment throughout the entire state increased 5.6% over the twelve month period through September; four times the tepid 1.4% pace of job growth nationally during that period. Bottom Line: September marked another month in a long string of record-setting months for oil production in North Dakota, and the energy-related boom there continues to make it the most economically prosperous state in America, with the lowest state jobless rate in the country and jobless rates in 11 of the state’s counties below 2.0%. North Dakota’s economic success, job creation, and energy-based prosperity is being driven by advanced drilling technologies that are now able to successfully access the state’s vast energy resources, especially the ocean of shale oil in the state’s Bakken region. At the current pace of production increases, North Dakota’s oil production will surpass one million bpd by the end of 2013, and the state could reach two million bpd within the next five years. As the U.S. becomes “Saudi America,” a lot of the credit goes to “Saudi Dakota” and especially “Saudi Bakken,” as today’s record-setting production data indicate. Article from http://www.aei-ideas.org |
2012.11.15 01:21
2012.11.15 01:28
Russia is worried about U.S. shale
Russia's $105 billion gas giant Gazprom is becoming aware of
what the U.S. shale oil boom means to the global economy.
On Monday, we wrote how the International Energy Agency (IEA) predicts
that the U.S will overtake giants like Saudi Arabia and Russia
as the No. 1 energy producer during the next decade.
Today, the Financial Times reports that Russian leader Vladimir Putin has warned
the state-controlled Gazprom to pay more attention to the shale gas boom in the U.S.
This comes less than a month after Gazprom announced the launch of its new flagship project,
the Bovanenkovo gas field, situated above the Arctic Circle.
The Financial Times says the Bovanenkovo field has enough reserves to supply Europe for decades.
It has taken years to develop and over $44 billion in capital.
For years, Gazprom has denied the importance of the U.S shale development,
believing its stronghold on the European energy market would remain intact.
But with booming production around the world,
Putin is starting realize its European monopoly isn't as safe as it once thought.
The small Arab nation of Qatar is the No. 2 gas-exporting nation on the planet – behind Russia.
It exports 78% of its production in liquid form (through liquefied natural gas, or LNG).
Australia is ramping up for LNG exports and experts say it could overtake Qatar by 2017.
U.S. exports are negligible right now – simply because we don't have the facilities in place yet.
But Cheniere's export terminal in production, things will soon change.
The American company plans to begin exports in 2015.
For years, Russia has been the dominant supplier of gas to Western Europe.
And it's locked countries into long-term contracts with high prices.
But this year, Russia has been forced to renegotiate its contracts…
2012.11.15 01:31
2012.11.15 02:58
I hope this would improve Mideastern situations as well as eventual peace of the World!
Thanks for the informations! KJ
2012.11.15 09:58
Good News, Indeed.
Why am I interested in coming Korean Presidential Election?
This could be the answer - not to elect Anti-USA, while they
are sending their family and children to the USA for better life
and education. They are nobody, but Phony-Baloney.
PS; We have nothing to dig in Korea - nearly all GNP, about
97% of it is coming from Trade. How can they survive with
Anti-Americanism? Destroy FTA? Answer is clear, isn't it?
And as they say, America is the country of future - with
her Innovative Spirit. America is the country which developed
about 350 new technologies that changed our Old World to the
World Today we're living with a few more developed by Japan.
The rest of the world are all beneficiaries of these new
technologies. As Thomas Friedman claimed in his NY Times
column, America will lead the world for centuries to come.
But somewhere in the world, shouting Anti-America?
This is another vivid examples of triumps of superior American technology
and
continous fearless innovative efforts of American private enterprises! KJ
GOD BLESS! AMERICA!