U.S. Now World’s Top Oil and Gas Producer
Recently released figures disclose that the United States surpassed Russia as the world’s largest producer of oil and natural gas in July.
The United States produced about 22.2 million barrels a day of oil, gas, and related fuels in July, according to the U.S. Energy Information Administration (EIA) and the International Energy Agency.
Russia’s forecast for oil and gas production in 2013 is about 21.8 million barrels a day.
The “startling shift” in production by the two countries is “eroding the clout of traditional energy-rich nations,” The Wall Street Journal observed.
America’s rise to the top has been fueled by new drilling techniques, such as horizontal drilling and hydraulic fracturing, which have unlocked vast quantities of oil and gas from shale rock formations – especially in North Dakota and Texas, The Guardian reported.
An analysis by The Journal reveals that the United States is on track to surpass Russia as the top oil and gas producer for 2013.
As a result of increased domestic production, U.S. imports of natural gas have fallen 32 percent in the past five years, and oil imports dropped 15 percent, narrowing the trade deficit.
Last year the United States produced more natural gas than Russia for the first time since 1982, according to the International Energy Agency.
America is also catching up with Russia in oil production, pumping 10.3 million barrels a day compared to Russia’s 10.8 million. Saudi Arabia is the leading producer at 11.7 million barrels.
Most of the new oil is coming from the western states. Oil production in Texas has more than doubled since 2010, and has tripled in North Dakota. Oklahoma, Wyoming, New Mexico, Colorado, and Utah also have shown sharp increases in oil production over the past three years, according to EIA data cited by The Guardian.
As the Insider Report disclosed in September, the U.S. energy boom is benefiting not only the energy industry, but every American household, boosting household income by more than $1,200 last year.
And lower energy prices will result in a rise in disposable income, adding $2,700 per household in 2020.