2013: The year of the United States’ biggest oil boom, ever

posted at 5:31 pm on December 27, 2013 by Erika Johnsen

Hey, remember that one time — er, actually, those many times over the past four or five decades — that eco-”experts” were predicting that we were all teetering on the brink of a “peak oil” crisis, the likes of which would throw the entire world into a state of perpetual famine and war over sating our gluttonous demand for the planet’s ever-shrinking oil reserves?

As entertaining as that particular brand of determined Malthusian fear-mongering can be, we have somehow managed to sail right on past all of the proffered deadlines for those imagined doomsday scenarios. Indeed, largely thanks to innovations in hydraulic fracturing revolution, the U.S. is already flirting with its own record high for crude-oil production, and 2013 marks the biggest acceleration in that oil output we’ve ever had, via Fuel Fix:

The United States’ average daily oil production is on track to surge by 1 million barrels per day this year, the biggest one-year jump in the nation’s history, according to federal data.

The country has pumped an average of 7.5 million barrels of crude per day in 2013, up from 6.5 million barrels per day in 2012. That breaks last year’s record, when oil production jumped by 837,000 barrels per day between 2011 and 2012.

And this is after oil production declined in 29 of the 40 years between 1971 and 2011. I’ve said it before, and I’ll say it again: President Obama is the very fortunate and incidental beneficiary of technological innovation and a subsequent oil-and-gas boom, on lands the federal government doesn’t control, and that have helped out quite a bit with an otherwise lackluster rate of economic and job growth. All of that means that 2014 is going to a big year for issues concerning all manner of oil-and-gas exports as well as renewed pushes for further offshore drilling and more drilling on federal lands, as energy companies and states all look to cash in further on one of the biggest economic boons of the day.


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Patiently waiting for the environmental extremists to be correct…ABOUT ANYTHING!

Global Cooling
Global Warming
Population Bomb
Ozone depletion
Alar
Peak Oil

etc.

etc.

etc.

dirtseller on December 27, 2013 at 5:43 PM

Hey, remember that one time — er, actually, those many times over the past four or five decades — that eco-”experts” were predicting that we were all teetering on the brink of a “peak oil” crisis, the likes of which would throw the entire world into a state of perpetual famine and war over sating our gluttonous demand for the planet’s ever-shrinking oil reserves?

The Peak Oil Blog, The Oil Drum, Twilight in the Desert, etc., all predicted over and over again that the age of oil was over. Turns out that was nothing but Doomer Pron, but those guys like Al Gore made a $hit ton of money hyping Peak Oil.

Isn’t Matt Saviner down in south American doing magic shows now?

Johnnyreb on December 27, 2013 at 5:44 PM

Time for the Feds to sell more land. Faster, please!

22044 on December 27, 2013 at 5:44 PM

Patiently waiting for the environmental extremists to be correct…ABOUT ANYTHING!

Global Cooling
Global Warming
Population Bomb
Ozone depletion
Alar
Peak Oil

etc.

etc.

etc.

dirtseller on December 27, 2013 at 5:43 PM

You forgot a few:

Acid Rain
Killer Bees
Nuclear Winter
DDT Ban that has killed about 50 MILLION children in Africa
Methane Release From the Tundra

And I am sure other people can add some.

Johnnyreb on December 27, 2013 at 5:50 PM

I like to imagine what our economy would look like with even a moderate Republican as POTUS right now.

Can you imagine how Reagan would have managed this bonanza and the resulting power it would give the US in geo-political affairs?

The Democrats are always lamenting the decline of US manufacturing and blue collar jobs. The unions do the same.

But neither are doing anything to cause energy production to increase.

If not for Democrats…(sigh)

Charlemagne on December 27, 2013 at 5:50 PM

President Obama is the very fortunate and incidental beneficiary of technological innovation and a subsequent oil-and-gas boom

Wait, what? You mean he didn’t make it happen? Are you sure???

iurockhead on December 27, 2013 at 5:50 PM

The biggest stick-in-the-mud on this issue is Arthur Berman. He’s been claiming for almost a decade that shale oil/gas are not economic, they don’t work, they are an illusion, etc. Google him, he’s a piece of work.

iurockhead on December 27, 2013 at 5:53 PM

Amazing how that works. Clinton got the internet boom, Bush got the fallout from it’s explosion. <– too many key words in your search NSA?

Now obama gets just enough to keep him looking… well, not good, but way better than the alternative. Imagine… just image if we had a President who had once run at least a lemonade stand, or didn't believe in socialism (wistful sigh).

WitchDoctor on December 27, 2013 at 6:02 PM

2013: The year of the United States’ biggest oil boom, ever

And yet oil closed over $100 barrel and gas is $1 more per gallon than it was Jan. 21, 2009.

Rio Linda Refugee on December 27, 2013 at 6:04 PM

Duck, Duck, Duck…$$$

d1carter on December 27, 2013 at 6:11 PM

Duck, Duck, Duck…$$$

d1carter on December 27, 2013 at 6:11 PM

That didn’t take long. What a bunch of maroons!!

dddave on December 27, 2013 at 6:16 PM

We go back in Political Time:
=============================

Keystone XL ‘shovel-ready,’ API contends
Jan. 6, 2012 at 8:22 AM

WASHINGTON, Jan. 6 (UPI) — The planned Keystone XL oil pipeline to the United States from Canada is “the biggest shovel-ready” project for U.S. job seekers, trade group API contends.

Canadian pipeline company TransCanada aims to build the Keystone XL pipeline from oil sands projects in Alberta province to refineries along the southern U.S. coast. The project has become political fodder for critics of U.S. President Barack Obama.

Marty Durbin, executive vice president for the American Petroleum Institute, was quoted by the Financial Times as saying Keystone XL would be a major stimulus for the struggling U.S. economy.

“The public’s No. 1 concern is

jobs and the economy

and this is the biggest shovel-ready project that’s out there,” he said.(More..)
=============

http://www.upi.com/Business_News/Energy-Resources/2012/01/06/Keystone-XL-shovel-ready-API-contends/UPI-11401325856176/

canopfor on December 27, 2013 at 6:18 PM

And yet oil closed over $100 barrel and gas is $1 more per gallon than it was Jan. 21, 2009.

Rio Linda Refugee on December 27, 2013 at 6:04 PM

See Quantative Easing Infinity +1. That added about 30% stealth inflation since 2008 to the US Dollar.

Johnnyreb on December 27, 2013 at 6:20 PM

Duck, Duck, Duck…$$$

d1carter on December 27, 2013 at 6:11 PM

d1carter:YOU RANG:)
===================

Duck Dynasty star put on hiatus after anti-gay remarks
1h
===
A&E says ‘Duck Dynasty’ star Phil Robertson will remain on series; filming resumes in spring – @THR
read more on hollywoodreporter.com
===================================

http://www.hollywoodreporter.com/live-feed/a-e-welcomes-phil-robertson-667647

canopfor on December 27, 2013 at 6:26 PM

oil
3h
Oil settles up 77 cents, or 0.8%, at $100.32 a barrel – @MarketWatch
see original on twitter.com

canopfor on December 27, 2013 at 6:27 PM

Short-Term Energy Outlook

Release Date: December 10, 2013
Next Release Date: January 7, 2014
***********************************

U.S. Petroleum Product Prices

EIA expects that regular-grade gasoline retail prices, which averaged $3.24 per gallon during November, will average $3.23 per gallon in December 2013. Led by falling Brent crude oil prices, the projected U.S. annual average regular gasoline retail price falls from $3.63 per gallon in 2012 to an average of $3.50 per gallon in 2013 and $3.43 per gallon in 2014. Diesel fuel prices, which averaged $3.97 per gallon in 2012,

are projected to average $3.92 per gallon in 2013 and $3.77 per gallon in 2014.
=================

http://www.eia.gov/forecasts/steo/report/prices.cfm

canopfor on December 27, 2013 at 6:35 PM

Obummer will take credit for it, natch!

KS Rex on December 27, 2013 at 6:45 PM

Johnnyreb on December 27, 2013 at 6:20 PM

Good point

Rio Linda Refugee on December 27, 2013 at 6:51 PM

So why are we still playing over $3 a gallon for gasoline? Inflation?

jawkneemusic on December 27, 2013 at 7:14 PM

Johnnyreb on December 27, 2013 at 6:20 PM

Oh…

jawkneemusic on December 27, 2013 at 7:16 PM

Good thing since Montana is shipping all it’s coal to China and closing 3 coal fired power plants to do that. Thanks, Baucus.

Kissmygrits on December 27, 2013 at 7:44 PM

Good thing since Montana is shipping all it’s coal to China and closing 3 coal fired power plants to do that. Thanks, Baucus.

Kissmygrits on December 27, 2013 at 7:44 PM

Yep, and here in Kentucky we have lost over 6,000 jobs this year alone due to closed coal mines thanks to the EPA. Good times for Appalachia.

Johnnyreb on December 27, 2013 at 8:00 PM

See Quantative Easing Infinity +1. That added about 30% stealth inflation since 2008 to the US Dollar.

Johnnyreb on December 27, 2013 at 6:20 PM

Don’t forget that BLS conveniently excludes food and fuels from its basket of goods that it uses to calculate the inflation index (pro tip to Bernanke: it ain’t just 1% inflation when the price of gas and foods keep increasing the way they have been for the past five years).

Good thing since Montana is shipping all it’s coal to China and closing 3 coal fired power plants to do that. Thanks, Baucus.

Kissmygrits on December 27, 2013 at 7:44 PM

The two items (closing [coal fired] power plants and coal sales to China) are not linked. If it wasn’t for the fact that Chinese coal-fired power demand continues to rise – and that US coal generally has a higher calorific content and lower percentage of sulfur and ash than Chinese coal – then coal-producing states would really be in the crapper.

But don’t you worry, NGOs like the Sierra Club are desperately trying to put the kibosh on that coal export thingy, just as they are desperately trying to kill Keystone XL and any other attempts to develop, use, or export energy and resources. After all, they have a planet to save, humans who happen to live on it be damned…

Wanderlust on December 27, 2013 at 8:25 PM

RFS renewable fuels standard

tmitsss on December 27, 2013 at 9:04 PM

Despite the best efforts of Obama & Co. to suppress it.

He takes credit for it, naturally.

Midas on December 27, 2013 at 9:17 PM

Julian Simon, right again.

thebrokenrattle on December 27, 2013 at 9:47 PM

We are not close to production rate of 1970 yet but maybe in another year or two, or three after another 1 million barrels or so per day increase in production.

If only Palin’s legislation in AK had not have been passed, we may have been much nearer.

Kermit on December 28, 2013 at 10:41 AM

canopfor on December 27, 2013 at 6:27 PM

Because tight shale drilling is quite expensive, about double the cost of conventional reserves (which also use horizontal drilling and frac’ing)

Kermit on December 28, 2013 at 10:43 AM

Shale Oil can provide jobs, tax revenue and energy security. What it cannot provide is cheap oil because it is expensive. Before long, we should think as an energy producer would rather than as an energy consumer only would. We should not be rooting for oil under $80/bbl because that would hurt production in the US without cutting production elsewhere where production costs are lower.

KW64 on December 28, 2013 at 12:27 PM

And I am sure other people can add some.

Johnnyreb on December 27, 2013 at 5:50 PM

————————————–

GMO food is going to kill us all.

Flouride in the water is going to kill us all.

Fukushima is going to kill us all.

Fracing is contaminating our water supplies. (Notice I use the proper spelling, leaving out the “k” added by the communists.)

Meremortal on December 28, 2013 at 12:45 PM