Report: U.S. on deck to become world’s largest oil producer

posted at 2:41 pm on November 12, 2012 by Erika Johnsen

President Obama is fond of iterating the only-technically correct factoid that, during his tenure, total U.S. oil production has increased — the only problem being that recent policy decisions tend to have little bearing on energy-sector metrics like total oil production (a reality of which I’m sure the president is perfectly aware, but chooses to deliberately mislead the public anyway).

Our country’s increased oil production is due largely to greater productivity on state and private land as well as technological innovation, not to mention the decisions that Obama “inherited” from his predecessors. Under the Obama administration, the rate of federal permitting has decidedly decreased, and the extent of the plans they’ve revealed for drilling opportunities thus far are not encouraging (cough cough, this).

As I’ve long maintained, if Americans really want to be energy independent, there’s no need to get federal policy enforcements involved — simply allow Americans to take full entrepreneurial advantage of our abundant natural resources, and we’ll become a net exporter without even having to try to engineer that outcome.

A new report from the International Energy Agency basically confirms as much, as reported by the WSJ:

A shale oil boom means the U.S. will overtake Saudi Arabia as the world’s largest oil producer by 2020, a radical shift that could profoundly transform not just the world’s energy supplies, but also its geopolitics, the International Energy Agency said Monday.

In its closely watched annual World Energy Outlook, the IEA, which advises industrialized nations on their energy policies, said the global energy map “is being redrawn by the resurgence in oil and gas production in the United States.” …

“By around 2020, the United States is projected to become the largest global oil producer” and overtake Saudi Arabia for a time, the agency said. “The result is a continued fall in U.S. oil imports (currently at 20% of its needs) to the extent that North America becomes a net oil exporter around 2030.”

In their report just last year, the IEA had Russia and Saudi Arabia as the top two contenders, but the United States is set to outpace them both. This isn’t to say that Saudi Arabia will be out of a market — demand is coming on strong from growing economies like China — but the United States’ currently 20% imported oil supplies could easily be erased.

Much of this potential is being made possible by advances in hydraulic fracturing, a.k.a. fracking, technology in unleashing the oil and gas trapped in tight rock formations. Unfortunately, the Obama administration has been somewhat less-than-keen to allow fracking too much leeway, because it’s a practice that lefty-environmentalists tend to very much hate.

The decisions being made by the Obama administration now are the decisions we’re going to be really feeling five, ten years from now — fingers crossed we get more than taxpayer-funded green-energy boondoggles out of this term. But I won’t hold my breath.


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Barky takes credit in 3…. 2…. 1…..

UltimateBob on November 12, 2012 at 2:43 PM

Providing obama and the marxist dhimocrapts have no say in it. Unfortunately…

LTBSAFITD

Old Country Boy on November 12, 2012 at 2:44 PM

Schmaltz, yes. Petroleum, not so much.

Rixon on November 12, 2012 at 2:48 PM

Give him time… once his second term gets rolling – he’ll do what he can to negate this.

Hill60 on November 12, 2012 at 2:52 PM

Well this may be so, but you can bet the likes of epa, salazar, and all those in bho’s team will find some way to make it almost impossible to do this? With, IIRC, almost 68 new regulations a day by bho/team you can bet that oil producing is in a huge number of them?
L

letget on November 12, 2012 at 2:53 PM

Right, shale oil drilling will save us.

http://thehill.com/blogs/e2-wire/e2-wire/267095-interior-proposes-shielding-federal-lands-in-west-from-drilling

Will it still save us after we BLOCK IT from happening?

“The Interior Department on Friday issued a final plan to close 1.6 million acres of federal land in the West originally slated for oil shale development.”

gekkobear on November 12, 2012 at 2:54 PM

Pigs will fly in tight circles before Dear Leader allows this to happen.

Wyznowski on November 12, 2012 at 2:56 PM

Aren’t oil prices based in dollars? If so, prices will never drop as long as the Fed keeps printing money. We could be shooting oil out our ass and it wouldn’t matter.

darwin on November 12, 2012 at 2:57 PM

Can you give one link or fact that shows they have any intention at all of doing this? Theyre doubling down on volts and green energy. They will never concede their liberal policies dont work. Im not by nature a negative person but I dont see Obama and his crew about facing on drilling fracking coal etc..

ldbgcoleman on November 12, 2012 at 3:04 PM

And shale oil will be outlawed when?

Philo Beddoe on November 12, 2012 at 3:04 PM

Aren’t oil prices based in dollars? If so, prices will never drop as long as the Fed keeps printing money. We could be shooting oil out our ass and it wouldn’t matter.
darwin on November 12, 2012 at 2:57 PM

Which is what makes an Obama second term so tragic. By the end of his second term, we could be looking at $8-10 a gallon.

Fanfreakintastic. Own it leftists!

jawkneemusic on November 12, 2012 at 3:04 PM

Meaningless drivel. Propaganda for Obama voters, his MSM cheerleaders, and the clueless muddle-headed masses.

Its insignificance can be demonstrated using simple math, but the target audience is incapable of comprehending that.

farsighted on November 12, 2012 at 3:04 PM

Report: U.S. on deck to become world’s largest oil producer

I’m certain the Obama administration has regulations in the works that will fix that problem

clippermiami on November 12, 2012 at 3:06 PM

We may be on deck. But President Downgrade will “pinch hit” Brasil or Mexico for us!

shanimal on November 12, 2012 at 3:07 PM

To highlight the insignificance of this propaganda factoid, Saudi Arabia could easily open up the spigots on its oil wells and leave the US in the dust as an oil producer. SA deliberately limits its production, as do several other OPEC producers.

farsighted on November 12, 2012 at 3:08 PM

I hate to seem naive … but don’t federal lands belong to the states?

What’s to prevent states from simply declaring that they’re taking their land back?

darwin on November 12, 2012 at 3:09 PM

But Obama is keeping as many US owned oil companies from drilling those lands, and is inviting in Chinese, Russia, Brazilian, British owned BP, and other foreign interests in to drill for oil and gas on US lands. Just as Obama did in the Gulf, he shut down US firms, and invited back only foreign ones. Obama is pricing US owned coal companies out of mining for coal, but Obama is exempting foreign owned mining companies from the burdens he is imposing on the mining of coal, and in fact Obama is giving Indian companies millions of US tax dollars to buy US coal mines, and helping them import foreign workers. Obama shut down US uranium mining, and then sold a Texas uranium mine to Russia, and one in either Montana or Wyoming, to a Chinese company. Obama is looting the US for his foreign friends, and the US won’t profit from our own oil and gas production either. This must be stood up to. Please research this, Hot Air and get the word out.

Ceolas on November 12, 2012 at 3:09 PM

“On Friday, citing ecological concerns, the administration closed off 1.6 million acres of federal land in western states from planned oil shale extraction. An American energy boom lies in wait underground and Obama is determined to keep it there.”

Democrats Better Start Soul Searching

M2RB: Tech N9ne featuring Liz Suwandi

Resist We Much on November 12, 2012 at 3:11 PM

almost 68 new regulations a day by bho/team you can bet that oil producing is in a huge number of them?

letget on November 12, 2012 at 2:53 PM

This is mind-boggling. Even though it is supposed to be posted on the WH site, chances are it will be taken down if there is too much aattention paid to it. I can only hope that a blog, or cable show picks this up and details it daily. It needs to be laid out at a fourth-grade level. Agency ____regulated ___________ to effect industry_______and will cost the American citizen $________.

salem on November 12, 2012 at 3:12 PM

“Do you want to trade cheap oil and gas for re-enslaving African-Americans and making it illegal for women to work and not have babies if ABCRepublican wins?!” -Chris Matthews, 2016.

Akzed on November 12, 2012 at 3:14 PM

Well, bicycles are better for everyone anyway. We need the exercise. I understand that the Chinese have a lot them in storage. Perhaps they can send them to us, we are sure going to need them.

SC.Charlie on November 12, 2012 at 3:16 PM

Well wouldn’t ya know? Another conservative freakout turning out to be a tempest in a teapot.

ernesto on November 12, 2012 at 3:22 PM

Think of an energy policy that will cause the most pain and cost the US taxpayers the most money…

… and that is what we will live with until the Democrats are forced out of office.

Seven Percent Solution on November 12, 2012 at 3:27 PM

I hate to seem naive … but don’t federal lands belong to the states?

What’s to prevent states from simply declaring that they’re taking their land back?

darwin on November 12, 2012 at 3:09 PM

Nope. This country is unique in the amount of land that is actually owned by the federal government, especially out west. Majorities of some states are federally owned.

http://bigthink.com/strange-maps/291-federal-lands-in-the-us

Nevada 84.5%
Alaska 69.1%
Utah 57.4%
Oregon 53.1%
Idaho 50.2%
Arizona 48.1%
California 45.3%
Wyoming 42.3%
New Mexico 41.8%
Colorado 36.6%

strictnein on November 12, 2012 at 3:28 PM

Whatever happens, gas prices will keep rising year over year, the cost of living will keep going up, the politically-connected rich will get richer and the rest will have a harder time making ends meet. #forward

Kakalak Pundit on November 12, 2012 at 3:35 PM

Well wouldn’t ya know? Another conservative freakout turning out to be a tempest in a teapot.

ernesto on November 12, 2012 at 3:22 PM

Obama is increasingly restricting access to federal lands. They just closed 1.6 million acres in Utah.

That means any increases in oil production will be dependent on private or state lands.

There is no reason that federal lands shouldn’t be open. These lands don’t belong to bureaucrats

darwin on November 12, 2012 at 3:36 PM

A shale oil boom means the U.S. will overtake Saudi Arabia as the world’s largest oil producer by 2020, a radical shift that could profoundly transform not just the world’s energy supplies, but also its geopolitics, the International Energy Agency said Monday.

Not if Obarky has anything to do with it, we won’t!

texgal on November 12, 2012 at 3:38 PM

salem on November 12, 2012 at 3:12 PM

I have been trying to find the link where I read that number of 68. If I find it, I will post it.
L

letget on November 12, 2012 at 3:39 PM

That’s nice, but if the value of the dollar continues to decline commodity prices will continue to go up disproportionately.

Wigglesworth on November 12, 2012 at 3:41 PM

Here is the article about the 68 regulations.

http://cnsnews.com/news/article/6125-proposed-regulations-and-notifications-posted-last-90-days-average-68-day
L

letget on November 12, 2012 at 4:00 PM

Yeah, we will produce it and then sell it to China.

JellyToast on November 12, 2012 at 4:01 PM

What a joke We are not allowed to drill so how does this happen??

Bullhead on November 12, 2012 at 4:07 PM

See? If you occasionally leave the conservative cocoon you’ll notice that counter to all the fear-mongering, in real world we’re on the way to energy independence. You’ll also learn many other facts that don’t align well with conservative worldview.

lester on November 12, 2012 at 4:08 PM

“By around 2020, the United States is projected to become the largest global oil producer” and overtake Saudi Arabia for a time,

Read the article. We will not overtake them by outproducing them. The Saudi’s will be back in the lead when their technology catches up.

davidk on November 12, 2012 at 4:15 PM

See? If you occasionally leave the conservative cocoon you’ll notice that counter to all the fear-mongering, in real world we’re on the way to energy independence. You’ll also learn many other facts that don’t align well with conservative worldview.

lester on November 12, 2012 at 4:08 PM

You’re an idiot.

darwin on November 12, 2012 at 4:31 PM

gekkobear on November 12, 2012 at 2:54 PM

Yes more ignorance. There is a huge difference between “oil shale” (which is actually a polymer called kerogen locked into the shale itself) and tight shale oil such as Bakken.

You do not frac (it is not frack that is media’s word) this. Instead it is mined like coal, crushed and retorted (like a big pressure cooker with very high heat) condense the vapors into a synthetic crude then refine.

Kermit on November 12, 2012 at 4:31 PM

Soon, every place anyone might want to drill for anything will be declared a National Landmark….

Or just regulated out of use.

That is the Obama way.

ajacksonian on November 12, 2012 at 4:36 PM

Your headline should include the phrase “Inspite of Obama.”

locomotivebreath1901 on November 12, 2012 at 4:52 PM

At our company in SoCal, the EPA prevented drilling permits for over 3 years to drill a new well for the state and the city of Long Beach, Calif. Obowma hates energy independence in Merica, he wants us living off government.

dthorny on November 12, 2012 at 5:04 PM

A shale oil boom means the U.S. will overtake Saudi Arabia as the world’s largest oil producer by 2020,

Well there’s your problem! Just like killing gulf oil production, it’s time to kill off the shale boom!

GarandFan on November 12, 2012 at 5:46 PM

Don’t worry America, Benedict Obama will put a stop to that, in no time! The EPA is, I’m sure, already been given the order to make up several hundred thousand new regulations and fees/taxes to bring oil production to a screeching halt! You heard the Marxist Messiah’s Energy guy say they were going to get the price of gas to European levels. So, get ready for $10 p/gal. gas before 2016!
Fight the Obama enemy media or Kiss The Constitution Goodbye: http://paratisiusa.blogspot.com/2012/09/an-open-letter-to-those-who-should-know.html?spref=tw

God Bless America!

paratisi on November 12, 2012 at 6:04 PM

Fracking ban on even private lands is coming.

That will no longer make it profitable to put a single fracking well on Joe Smith’s land and do the work of 20 under everybody else’s.

PastorJon on November 12, 2012 at 6:22 PM

Report: U.S. on deck to become world’s largest oil producer

Look out for that rogue wave.

Steve Eggleston on November 12, 2012 at 8:01 PM

I fully expect EPA to pre-empt regulation of oil and gas fracking, setting itself above the authority of the states, and then to regulate it virtually out of existence.

It will take a new administration to get us out of this mess. Meanwhile, energy prices will skyrocket.

petefrt on November 12, 2012 at 8:02 PM

The report I heard on the radio today presented the story as “US to temporarily become the largest oil producer in the world”. My first thought was, “Yeah, until Obama figures out how to fix that.

I can’t believe that a bare majority of Americans are brain dead. But it’s true.

AZfederalist on November 12, 2012 at 8:43 PM

This will never happen as long as Obama is president. The Democrats are killing this country and the fools keep electing them.

savage24 on November 13, 2012 at 3:46 PM