U.S. now producing more than 10 percent of the world’s crude oil

posted at 1:21 pm on March 28, 2014 by Erika Johnsen

I feel like a broken record at this point, but I cannot stress enough just how deeply President Obama and his woebegone economic policies are indebted to the shale oil and gas boom that, just a few years ago, nobody even saw coming. It is exquisitely galling to hear Obama administration officials try to assign all of the credit for what meager job and economic growth we have seen to the big-government, big-spending, high regulatory environment they have created, instead of to the innovative technologies that brought about an energy revolution that took place mostly on state and private lands — i.e., completely independent of any federal action.

Currently, the United States and Canada are the only major producers of tight oil in the world (although Russia has lately been making moves to try and get in on the action, ahem), and that spectacular acceleration of production growth now has us sitting pretty at 10 percent of the world’s total crude oil production. Via the Energy Information Administration:

graph of North American tight oil production, as explained in the article text

U.S. tight oil production averaged 3.22 million barrels per day (MMbbl/d) in the fourth quarter of 2013, according to U.S. Energy Information Administration estimates. This level was enough to push overall crude oil production in the United States to an average of 7.84 MMbbl/d, more than 10% of total world production, up from 9% in the fourth quarter of 2012. …

In February 2014, 63% of U.S. tight oil production came from two basins: the Eagle Ford in South Texas (1.21 MMbbl/d, or 36% of total U.S. tight oil production), and the Bakken Shale in North Dakota and Montana (0.94 MMbbl/d, or 28% of total U.S. tight oil production). Tight oil production in the United States represents 91% of all North American tight oil production, with the remaining 9% coming from Canada.

And here’s a little more encouraging census information about the boom’s positive economic effects released on Thursday:

New 2013 census information released Thursday shows that cities are the fastest-growing parts of the United States, and a majority of the metro areas showing that growth are located in or near the oil- and gas-rich fields of the Great Plains and Mountain West.

Neighboring cities Odessa and Midland, Texas, show up as the second and third fastest-growing metro areas in the country. Sara Higgins, the Midland public information officer, has a simple explanation: oil. “They’re coming here to work,” Higgins said. …

“Mining, quarrying, and oil and gas extraction industries were the most rapidly growing part of our nation’s economy over the last several years,” Census Bureau Director John H Thompson said.

According to its data, revenue for mining, quarrying, and oil and gas extraction grew 34.2 percent to $555.2 billion from 2007 to 2012. It also was among the fastest growers in employment as the number of employees rose 23.3 percent to 903,641.

Boom.


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And if Obama get’s his way, America will be increasing our percentage from 10 percentage to 5 percent by the end of the year…

oscarwilde on March 28, 2014 at 1:25 PM

FRACK BABY FRACK!

Roy Rogers on March 28, 2014 at 1:25 PM

Good.

But, anyone that actually believes gas prices are ever going to go way down is smoking something in Colorado. No matter what the % is.

Moesart on March 28, 2014 at 1:30 PM

Makes me wonder WHY we have had gas prices above $3.50 for 108 weeks under Obama, vs. only 26 weeks in 8 years under “oilman” George W. Bush.

At $3.50, a 20 gallon tank costs $52.60 MORE than when Obama came in ($1.87) a year’s worth is over $2500 for EACH car.

Anyone think that hurts the economy?

originalpechanga on March 28, 2014 at 1:31 PM

Anyone think that hurts the economy?

originalpechanga on March 28, 2014 at 1:31 PM

Don’t be silly, since when has the cost of energy ever impacted the economy… Under my plan, energy cost will necessarily skyrocket…

oscarwilde on March 28, 2014 at 1:35 PM

We’ll start the over / under of how long it will take Obama to shamelessly take credit for this at 3 days.

Rhetorical question – Imagine what the economic benefits would be if the same efforts were permitted offshore, on federal lands, within California? We might actually have a vibrant economic recovery underway.

Athos on March 28, 2014 at 1:39 PM

within California? We might actually have a vibrant economic recovery underway.

Athos on March 28, 2014 at 1:39 PM

But how would that advance the Democrats Marxist agenda?

oscarwilde on March 28, 2014 at 1:42 PM

Anyone think that hurts the economy?

originalpechanga on March 28, 2014 at 1:31 PM

Plenty of people here at Hot Air think higher energy prices are a good thing. Just look at any post that argues for exporting our natural gas to find them.

astonerii on March 28, 2014 at 1:42 PM

Sounds like it’s time to increase the amount of ethanol in gasoline again. Just in case.

butch on March 28, 2014 at 1:45 PM

Drill Baby Drill, Export Baby Export, Murica Baby Murica!

Sven on March 28, 2014 at 1:45 PM

But how would that advance the Democrats Marxist agenda?

oscarwilde on March 28, 2014 at 1:42 PM

It won’t, which is why it’s not being done on federal lands, offshore, or in California.

Athos on March 28, 2014 at 1:49 PM

offshore, or in California.

Athos on March 28, 2014 at 1:49 PM

Exactly, there is probably more oil off the shores of California than their is in Saudi Arabia.

oscarwilde on March 28, 2014 at 1:51 PM

U.S. now producing more than 10 percent of the world’s crude oil

….despite Obama’s efforts.

portlandon on March 28, 2014 at 1:54 PM

And the Great Obama Energy Boom continues.

Never has a presidency been witness to a boom of this kind across all energy sectors.

Another feather in the cap of this historic presidency.

Thanks, Obama!

everdiso on March 28, 2014 at 1:55 PM

Makes me wonder WHY we have had gas prices above $3.50 for 108 weeks under Obama, vs. only 26 weeks in 8 years under “oilman” George W. Bush.

Do you really not understand how gas prices work?

everdiso on March 28, 2014 at 1:57 PM

Unfortunately the EIA allows condensate produced with oil as oil, Eagle Ford & Permian wells produce a LOT of condensate. This used to be a good thing but there is so much on the market it is now cheaper than actual oil.

BTW, for the morons who complain about exporting gasoline and diesel, we have been doing that for decades to Canada and Mexico. Several Gulf Coast refineries receive crude oil from PEMEX in exchange for refined products since they do not have enough refining capacity to fulfill their needs. We have more than enough capacity. We have also exported gasoline and diesel to Canada for eons.

Kermit on March 28, 2014 at 2:02 PM

Correction…

Unfortunately the EIA allows condensate produced with oil to be reported as oil…

Kermit on March 28, 2014 at 2:03 PM

Erika, you most assuredly are not a broken record. The more you post, the more I like your contributions to Hot Air.

I’ve learned a fair amount about the energy industry from your posts.

Meryl Yourish on March 28, 2014 at 2:04 PM

Don’t be silly, since when has the cost of energy ever impacted the economy… Under my plan, energy cost will necessarily skyrocket…

oscarwilde on March 28, 2014 at 1:35 PM

Actually, push that percentage high enough, and the US just might have an interest in seeing energy prices skyrocket…

JohnGalt23 on March 28, 2014 at 2:04 PM

Do you really not understand how gas prices work?

everdiso on March 28, 2014 at 1:57 PM

Undoubtedly better than you do.

oscarwilde on March 28, 2014 at 2:04 PM

And the Great Obama Energy Boom continues.

Privately, and against the EPA and obama.

Never has a presidency been witness to a boom of this kind across all energy sectors.

In spite of him and his thugs.

Another feather in the cap of this historic presidency.

Thanks, Obama!

everdiso on March 28, 2014 at 1:55 PM

Kiss his azz, and suffocate from it. It ain’t Beluga caviar, fool. You stink over the net.

Schadenfreude on March 28, 2014 at 2:20 PM

But Obama said we can’t drill our way out of the “energy crisis”…

Pqlyur1 on March 28, 2014 at 2:21 PM

Imagine if obama would love America, the independence of her people, all of them, and her children.

Imagine if he’d care about liberty and freedom, in the US and in Ukraine, everywhere…

Name one people who are free/more free, due to obama, I triple dare you.

Schadenfreude on March 28, 2014 at 2:35 PM

Good. We also need more nuclear, thorium, and other energy sources. Fusion needs further study as it is the ultimate end-game. Until we get there, we need to do all we can to gather enough energy to further civilization.

antisense on March 28, 2014 at 2:40 PM

At $3.50, a 20 gallon tank costs $52.60 MORE than when Obama came in ($1.87) a year’s worth is over $2500 for EACH car.

Anyone think that hurts the economy?

originalpechanga on March 28, 2014 at 1:31 PM

Add that to the $2500 my husband and I are supposed to be saving in health insurance costs. $2500 X two vehicles, plus $2500 in non-existant savings = $7500 less in our pockets. Think about how much that hurts the economy.

catsandbooks on March 28, 2014 at 3:00 PM

It’s all fine and dandy.Obama takes credit and does this.
http://fuelfix.com/blog/2014/03/28/white-house-strategy-to-cut-methane-emissions-takes-aim-at-oil-industry/

docflash on March 28, 2014 at 3:14 PM

Another feather in the cap of this historic presidency.

Thanks, Obama!

everdiso on March 28, 2014 at 1:55 PM

Kiss his azz, and suffocate from it. It ain’t Beluga caviar, fool. You stink over the net.

Schadenfreude on March 28, 2014 at 2:20 PM

Oh, good grief. I thought neverdish was simply missing a sarc tag. I thought it was highlighting the stifled energy boom that’s going on despite our despot-in-chief. US energy boom should be credited to private industry, not the govt. Sheesh!

You’re right about one thing, this is a historic presidency. It’s “unpresidented”.

freedomfirst on March 28, 2014 at 3:27 PM

The choir knows that energy is subject to world prices since it is traded globally. It’s the taxes that are responsible for the highest prices, whether they are created to lessen use, pay for ‘green’ alternatives, pay for local/national infrastructure, supply slush funds for pols or just screw the sheeple. At least with our created energy, the prices are, really, kept lower than world prices and most of the extorted ‘profits’ stay here, unless the Bahamas, et al, get the ill-gotten goodies…

vnvet on March 28, 2014 at 4:12 PM

Makes me wonder WHY we have had gas prices above $3.50 for 108 weeks under Obama, vs. only 26 weeks in 8 years under “oilman” George W. Bush.

At $3.50, a 20 gallon tank costs $52.60 MORE than when Obama came in ($1.87) a year’s worth is over $2500 for EACH car.

Anyone think that hurts the economy?

originalpechanga on March 28, 2014 at 1:31 PM

Tight oil is not cheap oil and is a product of the big increase in world demand for oil. But, it is our oil and cannot be withheld in time of crisis and those high prices go to employing American workers. If we were not producing it, prices would be even higher. Demand in China and India is beyond our control and none should be faulted for price increases due to rising demand. OTOH high prices because of government stifling production should be faulted severely.

KW64 on March 28, 2014 at 4:27 PM

U.S. now producing more than 10 percent of the world’s crude oil

Not doing Joe American much good, though.

More pipe dreams of economic and social salvation.

Dr. ZhivBlago on March 28, 2014 at 4:37 PM

KW64 on March 28, 2014 at 4:27 PM

BINGO

Kermit on March 28, 2014 at 5:03 PM

So if this story came out with a Republican in the white house the left would lose their shit.

The Notorious G.O.P on March 28, 2014 at 5:12 PM

Exactly, there is probably more oil off the shores of California than their is in Saudi Arabia.

oscarwilde on March 28, 2014 at 1:51 PM

For really long-term thinking, maybe we should keep using up the oil in the ME and other countries, and just keep ours in the ground.

Of course, since OPEC proven reserves are 50 times that of the US, it could take a while…

AesopFan on March 28, 2014 at 5:27 PM

AesopFan on March 28, 2014 at 5:27 PM

More properly it’s 10X. However, should an economical way to extract actual shale oil, we beat all the Middle East and Russia hands down. The problem is that shale oil is not actually oil, but instead a polymer precursor to oil, kerogen.

Shale oil and tight shale oil are two different things entirely. Bakken is not shale oil but it is tight shale oil.

Kermit on March 28, 2014 at 8:44 PM

Fracking is a stupid idea. When the water tables are permanently disrupted, when the earthquakes happen and when we finally realize what a ‘saw the branch off from the wrong side’ episode in human events this is- we won’t be able to do anything but suffer.
How supremely ironic and hypocritical of a proponent of such nonsense doesn’t want it in HIS backyard–
http://www.texasmonthly.com/daily-post/exxonmobil-ceo-doesnt-want-fracking-operation-near-his-backyard
Got it. Ok for me, but not for thee.
As a First Nation human, I think this is total madness. You reap what you sow when you support Big Oil. Energy and the obscene profits should be ours. If you support this farce, you’re either paid or ignorant of the facts. Not stupid, merely ignorant. Big difference.
Oh, and don’t worry. This will continue because this has become an oligarchy. The rich rule and commoners will become peasants in short order by grand design. And the big klaxon horns of media will still thunder on how good we have it.
How many untold millions are spent on scientists working at the NSA or at DARPA that could turn this around with more research in nuclear fusion, battery, solar cell or other things but they concentrate on control of the masses, instead.
Flame away, I got an hour to kill.

Nape-wa-ste on March 29, 2014 at 10:54 AM

Is there no one else?

https://www.youtube.com/watch?v=Rx9OOzBko40

Shirley someone.

Nape-wa-ste on March 29, 2014 at 11:21 AM

“Of all the War Lords loved by the God, I hate him the most”

Anyone? AllahPundit? C’mon.
I like Allah, btw.

Nape-wa-ste on March 29, 2014 at 11:44 AM

Nape-wa-ste honey, show us on the doll where Big Oil touched you.

itsspideyman on March 29, 2014 at 1:03 PM

itsspideyman?
I guess that’s funny, in a non funny sort of way. Try harder, please.

Nape-wa-ste on March 29, 2014 at 1:36 PM

Flame away, I got an hour to kill.

Nape-wa-ste on March 29, 2014 at 10:54 AM

Goldline…that’s where I buy my gold. Do you have your doomsday seed bank? At least a month of food? Is your faraday cage completed?

Murphy9 on March 29, 2014 at 3:08 PM