Carpe Diem

‘Saudi America’s’ oil output highest in 20 years, now exceeds oil production in all of Central and South America

oil

oil1The Department of Energy reported today that the US produced an average of 7.064 million barrels of oil per day during the week ending February 8, which is the highest level of domestic oil output since December 1992, more than 20 years ago (see top chart above). Compared to the same week a year ago, US oil output increased by 21.4% last week, marking the fifth straight week of annual increases in oil production above 20%. In just the last 18 months, US oil output has increased by more than 1.5 million bpd, from 5.4 million bpd in July 2011 to almost 7.1 million bpd last week. That increase of 1.5 million bpd in America’s oil output would be almost the equivalent of adding Norway’s entire oil production (1.549 million bpd in October 2012) to the US oil supply.

The bottom chart below shows that America’s oil output has increased so dramatically over the last year that US oil production recently surpassed the entire output of all Central and South American countries, according to international oil production data from the Department of Energy.  For the month of October (most recent month available in this data series), the US pumped an average of 6.82 million bpd, which exceeded the 6.57 million bpd in combined output for all of the 14 oil-producing countries in Central and South America, including Brazil and Venezuela.  That was the second straight month that America’s oil output surpassed all of Central and South America’s production, which hasn’t happened since early 1998, almost 15 years ago.

See a related Bloomberg news report today titled ”Fracking Threatens OPEC as U.S. Output at 20-Year High,” with this quote from Ed Morse, global head of commodities at Citigroup: “OPEC should find it challenging to survive another 60 years, let alone another decade. The U.S. should see its role in the world as a singular superpower enhanced and prolonged.”

4 thoughts on “‘Saudi America’s’ oil output highest in 20 years, now exceeds oil production in all of Central and South America

  1. First of all, when you invest billions in new drilling you are supposed to get an increase in production. That increase in production is only meaningful over the long run if it is sustainable and given the massive depletion rates it clearly isn’t. Second, you are still less that 30% below peak production, which would probably be higher if the numbers are counted the same way. Third, Central America never had all that much production and is certainly not throwing as much money at cash-flow negative projects as the US. Saying is that you produce more is like saying that you are the biggest kid in grade seven. While it may be factually correct it is not as meaningful as you might want it to be.

    • So Vangel, it is better for the U S to throw money into all of Obama’s friend’s Green Energy programs that have all gone bankrupt

    • Where should the people blowing their money on these negative cash flow projects be blowing their money? Stock market? It sounds like they chose the oil as the best investment for their loot. I understand where you’re coming from. There’s a good chance that they might not make a killing when its all said and done. But as of right now, there are an awful lot of people doing well for themselves with the opportunities it has created.

      • Where should the people blowing their money on these negative cash flow projects be blowing their money?

        People shouldn’t be blowing their money anywhere. They should try to preserve it or to park it in investments that will increase their purchasing power. I do not see why it makes sense to finance companies that are constantly looking to plug finance gaps yet pay their CEOs very well and own private jets that are at the disposal of the board and senior executives.

        I understand where you’re coming from. There’s a good chance that they might not make a killing when its all said and done.

        I am predicting that they will lose their capital over the long run because funding will not be as readily available nor as cheap as it is now.

        But as of right now, there are an awful lot of people doing well for themselves with the opportunities it has created.

        That is true. If you work in the industry or are a manager who gets bonuses you have done very well. If you have leased land you have also done very well. And if you are an investor who chose to cash out while the going was good you have done well. But there is still someone holding the bag who cannot get paid because the cash flow isn’t there. My point is that the process is unsustainable just as previous bubbles.

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