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PIRA: The U.S. is now the world's no. 1 oil supplier

  • The U.S. has passed Saudi Arabia as the world’s biggest oil producer, thanks to the fastest oil production expansion over a four-year period since the 1970-74 Saudi output surge, energy analysis firm PIRA says.
  • The U.S. growth rate is greater than the sum of the growth of the next nine fastest growing countries combined and has covered most of the world's net demand growth over the past two years, according to PIRA.
  • Total liquids produced by the U.S., defined broadly to include supplies such as crude oil, condensate, natural gas liquids and biofuels, should average 12.1M bbl/day in 2013, a 3.2M bbl/day jump from 2009.
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Comments (16)
  • Rinascimento
    , contributor
    Comments (1029) | Send Message
     
    That's great!! if this is true then we can get our troops out of the Middle East for good and save a few $billions, right? I can only dream; I keep reading that those wells from fracking deplete rather fast in the first 2-3 years and replacement wells are expensive
    16 Oct 2013, 07:34 PM Reply Like
  • bigbenorr
    , contributor
    Comments (733) | Send Message
     
    Even if they deplete quickly and there is no secondary recovery, in the time that one well depletes you can drill another 20. The producers can keep this going until they run out of drilling locations, which will take a while.
    17 Oct 2013, 10:28 AM Reply Like
  • Rinascimento
    , contributor
    Comments (1029) | Send Message
     
    Thank you for reply; yes I agree with you but the replacements drilling wells cost will be expensive from what I hear
    18 Oct 2013, 07:17 AM Reply Like
  • bigbenorr
    , contributor
    Comments (733) | Send Message
     
    Its like $7-$10 M per well. If oil prices stay in the current range its not much of an issue.
    18 Oct 2013, 08:39 AM Reply Like
  • Rinascimento
    , contributor
    Comments (1029) | Send Message
     
    Thank you for the information; I hear that companies have been writing off expensive replacement wells since the probability of finding a successful well goes down too...I think a company has to drill 7 wells to replace a good well as a minimum ....I don't know how true this is and so oil has to stay high
    18 Oct 2013, 10:46 AM Reply Like
  • bigbenorr
    , contributor
    Comments (733) | Send Message
     
    Well, globally you may be right, but I know in the Bakken virtually every well is going to produce, it is just a question of how much. The shale plays are getting to the point where you can come up with a reasonable number for how much each well is going to produce and then decide whether that outweighs the drilling cost, and currently I think the numbers are working out pretty well.
    18 Oct 2013, 11:00 AM Reply Like
  • Rinascimento
    , contributor
    Comments (1029) | Send Message
     
    Well thanks again for your explanations; I have COP and PWE as oil stock players; COP has been good while PWE is not cooperating but hopefully new management will fix things...do you have any stocks players in the Bakkens?
    18 Oct 2013, 11:57 AM Reply Like
  • bigbenorr
    , contributor
    Comments (733) | Send Message
     
    Not really, I used to trade ERF but that went badly. I don't think their Bakken assets were the problem though. If you are looking for more Bakken analysis check out this guy.
    http://bit.ly/GJ22KZ
    18 Oct 2013, 12:54 PM Reply Like
  • Rinascimento
    , contributor
    Comments (1029) | Send Message
     
    Thanks for site
    18 Oct 2013, 07:24 PM Reply Like
  • PeakOiler
    , contributor
    Comments (292) | Send Message
     
    Yup, production is expected to average 12.1 millions of barrels per day this year, and consumption is expected to average over 20 million barrels per day. A shortfall of about 8-9 million barrels per day. Whoopee. The US has 5% of the world's population, and uses 25% of the world's oil. Sum Ting Wong.
    16 Oct 2013, 08:11 PM Reply Like
  • Rinascimento
    , contributor
    Comments (1029) | Send Message
     
    Peakoil

     

    I think that this energy independence is just hype to play up that the US is still a major power.....I will believe it when our forces are out of the ME
    16 Oct 2013, 08:22 PM Reply Like
  • Hendershott
    , contributor
    Comments (1496) | Send Message
     
    It's liquids production not just oil and it does take pressure off the US in regards to middle east involvement. Reuters has a good piece on shale, well depletion etc. this morning. Go to Reuters.com search for shale. "Why shale plays are really different." If the pessimists were right, the shale play would be collapsing. They aren't and it's not.
    16 Oct 2013, 08:16 PM Reply Like
  • DeepValueLover
    , contributor
    Comments (8133) | Send Message
     
    I don't think Mr. Obama is going to like this...I think he will try to kill this progress.

     

    That's all right though...the GOP will stop him.

     

    Oh, wait...
    16 Oct 2013, 09:44 PM Reply Like
  • Energysystems
    , contributor
    Comments (944) | Send Message
     
    Obama already has. These gains in production are despite the Feds riding the brakes.

     

    Oil and gas production on U.S. federal lands declined during fiscal year 2012, the latest year available, according to the U.S. Energy Information Administration. Only 17.1 quadrillion British thermal units were produced in 2012, down 4% from 2011, and the lowest level in 10 years.

     

    In fiscal year 2012, 4.3 trillion cubic feet of natural gas came from federal lands, almost a third less than in 2008, according to the EIA.
    According to data collected by the Institute for Energy Research, federal drilling permits have become more difficult to acquire. Between fiscal years 2006 to 2008 and 2009 to 2011, the number of permits approved fell from 20,479 to 12,821. Moreover, between 2005 and 2011, the time it took to acquire such a permit rose from 154 days to 307 days.
    16 Oct 2013, 11:14 PM Reply Like
  • Hendershott
    , contributor
    Comments (1496) | Send Message
     
    What the US has that other countries don't is private ownership of mineral rights. That has allowed companies to take on the risk and develop the resources. Don't worry about the Federal lands, we're doing fine with the private. As far as Obama, so far the administration hasn't screwed it up. Stop worrying about it. With all the hand wringing we will be the second largest liquids producer in the world soon.
    18 Oct 2013, 04:34 PM Reply Like
  • Rinascimento
    , contributor
    Comments (1029) | Send Message
     
    Thank you ...good advise
    18 Oct 2013, 07:27 PM Reply Like
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