Carpe Diem

US oil output in 2012: Largest 1-year gain in US history

oilJust out from the Wall Street Journal, “U.S. Notched Biggest Oil-Output Gain in 2012

The U.S. last year posted the biggest increase in oil production in the world and the largest increase in U.S. history, unleashing a surge of fresh crude supplies that are helping restrain global oil prices and advance U.S. foreign-policy goals.

Oil production in the U.S. jumped 14% last year to 8.9 million barrels per day, according to the newly released annual BP statistical review. That production, spurred primarily by the development of new tight-oil fields such as those in North Dakota, helped offset supply shocks in other oil-producing countries.

“The growth in U.S. output was a major factor in keeping oil prices from rising sharply, despite a second consecutive year of large oil supply disruptions,” said BP Chief Executive Bob Dudley.

The boom in the U.S. and Canadian oil patch contrasts sharply with developments in many big oil-producing countries such as Mexico, Nigeria, Brazil and Venezuela, where output fell. Canadian production, spurred by both traditional crude production and the development of oil sands, grew almost 7%.

MP: The chart above shows the record-setting increase in US oil output last year, which registered a 790,000 barrel per day increase in 2012, the largest single-year gain in US history. Welcome to “Saudi America’s” shale revolution.

8 thoughts on “US oil output in 2012: Largest 1-year gain in US history

  1. The EIA just released a study that there is shale all over the globe.

    As for “running out of oil” how that can happen at $80+ a barrel will be interesting to watch.

    I am also puzzled by the platform that global oil prices will spike, but USA production cannot be sustained.

    I think that is a null set….

    So, why are rural Senators pimping for ethanol and wind power?

  2. If Adam Smith were around today in order to re-write his “Wealth of Nations,” then he would include a chapter in its Book I on “Fracking, Capital Formation and Wealth Creation.”

    21st century oil-patch technology is in its infancy; production costs will only plunge. Thomas Malthus, Paul Ehrlich–eat your heats out.

  3. visited williston, nd two weeks ago. keystonexl pipeline is a must. they use 100 car unit trains to move east 100k shipments to minnesota and on east. every 71 seconds a 350 bbl transport rolls into the train terminal. est $5/ bo trucking and $10 to 20 for rail. high transportation costs is shifting emphasis to eagle ford in so texas. we better wake up!!

  4. “So here’s the truth: prices, not physics, will determine shale’s depletion rates.”

    That has always been the issue. No one has claimed we’ll run out of fossil fuels. But it gets increasingly more expensive to access them. An economy based on inexpensive oil/gas will disappear and then we have to adjust to paying higher prices for them.

    Read more: http://www.businessinsider.com/fracking-shale-extraction-and-depletion-2012-12?op=1#ixzz2WAFYoZur

    http://www.businessinsider.com/fracking-shale-extraction-and-depletion-2012-12?op=1

  5. I’ve been waiting for these geostrategic developments in the oil industry since 1973, and am glad to see that, so far, no president or regulatory agency has overstepped their authority and instituted “price controls.” Nobody wants those gas lines of the 1970′s return. I just hope that Saudi Arabia, Kuwait, among other OPEC exporters don’t have something up their collective sleeves, such as flooding the U.S. market with $2.00/bl. oil, as they did in 1969-’72. That almost destroyed America’s oil industry.

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