Wednesday, March 14, 2012

Rapid increases in US oil production

As discussed before, with the domestic demand lower and production higher, the US is importing an increasingly smaller portion of its fuel consumption. A good discussion on lower demand for diesel fuel can be found here. A similar trend exists in the US demand for gasoline, jet fuel, and in particular heating oil (given the warm winter).

Again, just to bust a few myths on this topic, the US oil production/exploration activities continue to increase sharply. This activity can be seen in the increases of the number of rigs.

Source: Barclays Capital
Here is how the recent as well as the foretasted changes in US production of crude oil and liquid fuels compares to other non-OPEC nation.

For some reason this upsets some people who are looking for signs of "peak oil". But whatever the long term forecasts, these are the facts today.
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