U.S. To Overtake Russia As Top Oil Producer By 2019 At Latest

According by EIA U.S. will overtake Russia as the world’s biggest oil producer by 2019 at the late. U.S. oil is also increasingly being exported, including to the world’s biggest and fastest growing markets in Asia. " The United States will become the No.1 oil producer sometime very soon" - said Fatih Birol, IEA Executive Director 

  • Upvote 1

Share this post


Link to post
Share on other sites

(edited)

This may work against OPEC cut deal...But for now we can only hope for the best...

Edited by Harsh vardhan singh
  • Like 1

Share this post


Link to post
Share on other sites

Saudi Arabia last year produced just 10 million barrels a day.  U.S. will vie with Russia, with output of 11 million barrels a day, to become the world’s top oil producer.

Share this post


Link to post
Share on other sites

Wealth from that oil, forget not, some of it ought to be dedicated towards healthcare, education, and social services...

Share this post


Link to post
Share on other sites

How will OPEC respond?

Share this post


Link to post
Share on other sites

If the U.S. is now or could be a top producer of oil, why are gasoline prices (just few days ago)  edging up to $3.00 a gallon? Something's wrong...

Share this post


Link to post
Share on other sites

4 minutes ago, Pavel said:

If the U.S. is now or could be a top producer of oil, why are gasoline prices (just few days ago)  edging up to $3.00 a gallon? Something's wrong...

Taxes. It's roughly $2.40-$2.50 per gallon....And, I agree. It's not cheap

Share this post


Link to post
Share on other sites

19 minutes ago, Petar said:

How will OPEC respond?

They already has a answer. Few days ago,  OPEC said the 14-member producers’ group is working on a plan for a formal alliance with ten other "petrostates", including Russia, aimed at propping up oil prices for the foreseeable future. It could be their way for total control of market and oil. “Supergroup”!

Share this post


Link to post
Share on other sites

The big question remains would the US be willing to form an alliance with other oil states. What's the incentive for them? Better oil prices and a part of a super state which would dilute the power the US aims to have in influencing oil markets, help countries like Russia and Saudi Arabia fund their own agendas which may not be palatable to the US, or hold sway in the market, albeit lower oil prices but continue to stifle revenues to Russia and the others through low prices. 

Share this post


Link to post
Share on other sites

There is no way for the US to form an alliance with other oil states. Private entities cannot collude with other entities to fix prices here in the United States. And there are shareholders to think about. There is no way this could happen here. Free market. They would be sued, plain and simple. US companies are prohibited by law from manipulating the market.

For some reason, in the wake of OPEC colluding with a huge chunk of the oil world, which includes Russia, prices have been somewhat stabilized and brought out of the doldrums. This type of manipulation used to be frowned on in general. But now the world has mostly become desensitized to this type of price fixing, and now all of a sudden the oil cartel is suddenly not only tolerated, but praised for its compliance to the manipulation, and even chastised for not adhering to it (like Iraq). This is actually a bit crazy. OPEC is a cartel that is colluding with others to manipulate the market, which has demanded lower prices. With this manipulation, the market cannot right itself--i.e., high cost producers will be pushed out as they should be, and lower-cost producers will flourish and get lower-costier (I made up that word and I like it). 

The US is not going to do anything but fill the gap left by OPEC.

  • Like 1

Share this post


Link to post
Share on other sites

If the Ruble remains cheap and Russia gets out of the OPEC deal, the country should be able to increase its oil production significantly

Share this post


Link to post
Share on other sites

They aren't being hurt by the production cut anyway. They "cut" production from November 2016 highs, so the cut isn't actually a cut. I'm sure they are getting something out of the production cut deal. Allies with Saudi Arabia--many new deals signed--which I'm sure wouldn't have happened if Russia would have backed out of the deal.

Share this post


Link to post
Share on other sites

American light crude shipments to Asia will reach almost 1.3 million barrels a day in the next five years from almost nothing in 2016.

Share this post


Link to post
Share on other sites