U.S. domestic oil production at record high, may exceed Saudi output

As disappointing and peculiar as it may be, this is the “free market” at work.

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U.S. oil production soars toward record

By JONATHAN FAHEY
Wednesday, October 24, 2012
6:07 AM
The Associated Press

NEW YORK – U.S. oil output is surging so fast that the United States could soon overtake Saudi Arabia as the world’s biggest producer.

Driven by high prices and new drilling methods, U.S. production of crude and other liquid hydrocarbons is on track to rise 7 percent this year to an average of 10.9 million barrels per day. This will be the fourth straight year of crude increases and the biggest single-year gain since 1951.
The boom has surprised even the experts.

“Five years ago, if I or anyone had predicted today’s production growth, people would have thought we were crazy,” said Jim Burkhard, head of oil markets research at IHS CERA, an energy consulting firm.

The Energy Department forecasts that U.S. production of crude and other liquid hydrocarbons, which includes biofuels, will average 11.4 million barrels per day next year. That would be a record for the U.S. and just below Saudi Arabia’s output of 11.6 million barrels. Citibank forecasts U.S. production could reach 13 million to 15 million barrels per day by 2020, helping to make North America “the new Middle East.”

The last year the U.S. was the world’s largest producer was 2002, after the Saudis drastically cut production because of low oil prices in the aftermath of 9/11. Since then, the Saudis and the Russians have been the world leaders.

The United States will still need to import lots of oil in the years ahead. Americans use 18.7 million barrels per day. But thanks to the growth in domestic production and the improving fuel efficiency of the nation’s cars and trucks, imports could fall by half by the end of the decade.

The increase in production hasn’t translated to cheaper gasoline at the pump, and prices are

Gas Prices drop: Saudi Oil output at 30 year high

Have you noticed?

The price you pay for gasoline has dropped.

Why?

It’s quite simple really.

Oil output from Saudi Arabia is at a 30 year high.

Yeah.

It’s exactly like Gil Scott-Heron said on his song 1981 song “B-Movie”:

“What has happened is that in the last 20 years, America has changed from a producer to a consumer.  And all consumers know that when the producer names the tune, the consumer has got to dance.  That’s the way it is.  We used to be a producer – very inflexible at that – and now we are consumers and, finding it difficult to understand.  Natural resources and minerals will change your world. The Arabs used to be in the 3rd World.  They have bought the 2nd World and put a firm down payment on the 1st one.  Controlling your resources will control your world.  This country has been surprised by the way the world looks now.” 

Saudi Arabia Crude Production Rises to Highest in Three Decades

Dec. 6 (Bloomberg) — Saudi Arabia, the world’s biggest crude exporter, boosted output last month to the most in more than three decades to meet customer demand.

“We produced 10 million and 40 barrels in November because