Carpe Diem, Economics, Energy and the Environment

Energy fact of the day: US oil output in September was the highest since May 1989, largest 12-month increase since 1953

oil

Based on new data released today by the Department of Energy, US oil output in September increased by 25.4% from a year ago to 7.783 million barrels per day, which is the highest monthly output of crude oil in the US since May 1989, more than 24 years ago. The 25.4% increase in domestic oil production from last September was the largest percentage 12-month increase in US crude oil output in more than sixty years (with the exception of a 39.7% increase in September 2009 following a huge hurricane-related drop in September 2008, see chart above), going all the way back to a slightly higher 25.6% increase in May 1953.

If the current pace of increases in US oil output continues, it’s highly likely that domestic crude oil production will surpass 8 million bpd in October or November of this year, surpass 9 million bpd by next fall, and then reach the important 10 million bpd milestone in early 2015. At that point, US crude oil production would be at the highest level ever, matching the record high 10 million bpd production levels set in October and November 1970.

Welcome to the Great American Energy Boom, and it’s just getting started.

8 thoughts on “Energy fact of the day: US oil output in September was the highest since May 1989, largest 12-month increase since 1953

  1. The question is – will the next 2M bpd be gained equally fast, as the article anticipates?

    The CA Monterey shale is not being tapped, neither is Alaska’s ANWR.

    If we can nonetheless gain another 2M/day in 2 years, then imports are greatly slashed. We could shrink Middle Eastern imports down to a tiny level.

    • I would guess the slope can not go “90 degrees” much longer, and will start to flatten out. But I would guess we have several years before the slowdown is noticable. Even if every month the oil procuction increases the same amount, the % increase will go down. That is what makes this so amazing, the oil output not only is increasing but it is increasing at a vastly greater rate every month.

  2. This article says Crude Oil is under 8M barrels/day.

    Yesterday’s article about ‘total petroleum’ indicates that the US produces over 12M barrels/day, if natural gas liquids and refined petroleum are added to that.

    But oil imports do not drop due to the 12M number including more varieties of liquids than the 8M number. Imports apparently only drop in proportion to how much this 8M number in this article, goes up.

    • Yes because we don’t use the alternate energy forms much in place of liquid fuels. Liquid fuels are excellent for mobile transportation, but are too expensive for most power generation.

  3. “…surpass 9 million bpd by next fall, and then reach the important 10 million bpd milestone in early 2014.”

    I infer from the context that the 10 million bpd in early 2014 is a typo and should instead read 2015.

  4. And we spent $3 trillion to secure Iraq oil—and failed?

    At $100 a barrel, the world will produce gushers of oil…demand will be flat…

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