Friday, August 23, 2013

The Unexpected Gold Rush of Oil in the U.S.

begin quote from page 25 of the august 12th 2013 Time Magazine:
"---The U.S. has always been a major oil producer but output had been declining steadily for decades. Production peaked in 1970 and fell to a 62 year low of 5 million barrels a day in 2008 But that decline curve has reversed. Seemingly overnight, production rebounded to nearly 7 million barrels a day and is projected to rec the astonishing level of 9 million to 10 million by 2020.

The natural gas story is equally dramatic. Traditional gas fields were in long term decline, and production had fallen to 38 billion cubic feet per day in 2006. Last year, the U.S. procured 65 billion cubic feet per day. Even more important, the U.S. is now believed to possess a 100 year supply of natural gas, and prices have fallen sharply, from $13 per million BTUs in 2008 to less than $4 now.

What explains this phenomenon? The answer is uniquely American technology--a breakthrough in horizontal drilling combined with advanced forms of hydraulic fracturing and seismic exploration. "

end quote from page 25 in the August 12, 2013 Time Magazine.

Though output has increased of both oil and natural gas, less and less of it tends to be used in the U.S. so it is being exported more and more. The prices of gas this summer were some of the highest at the pump that I have ever seen since March. For the first time where I live I have been able to buy Regular Gas at around $3.73 cents a gallon since about I believe march as the prices have been generally higher than that (up to about $4 to 4.15 a gallon since March in California for regular gas.)

Because of the really high gas prices people tend to be generally driving less. However, that is sort of a relative term because more drove than likely have driven this summer since about 2007 because the economy is better now than it was from 2007 until now. I think the U.S. now is likely is presently one of the highest exporters of oil on earth when we used to be the biggest consumer of foreign oil before 2007.

Here is a list of oil exporting nations as of 2009. However, this doesn't actually display what I wanted to because of various factors up to the present. But it is better than nothing:

Begin quote from Wikipedia:

List of countries by oil exports

From Wikipedia, the free encyclopedia
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A world map of countries by oil exportation, 2006.
This is a list of oil-producing countries by oil exports based on The World Factbook [1]. Note that many countries also import oil, and some import more oil than they export. Non-sovereign entities are listed in italics.

Countries

Rank Country/Region Oil - exports (bbl/day) Date of
information
1  Saudi Arabia 7,635,000 2009 est.
2  Russia 5,010,000 2010 est.
3  Iran 2,523,000 2009 est.
4  United Arab Emirates 2,395,000 2009 est.
5  European Union 2,196,000 2009 est.
6  Norway 2,184,000 2009 est.
7  Iraq 2,170,000 2011 est.
8  Kuwait 2,127,000 2009 est.
9  Nigeria 2,102,000 2009 est.
10  Canada 1,929,000 2009 est.
11  United States 1,920,000 2009 est.
12  Netherlands 1,871,000 2009 est.
13  Venezuela 1,871,000 2009 est.
14  Angola 1,851,000 2009 est.
15  Algeria 1,694,000 2009 est.
16  Libya 1,580,000 2010 est.
17  Mexico 1,511,000 2009 est.
18  Kazakhstan 1,390,000 2011 est.
19  Singapore 1,374,000 2009 est.
20  United Kingdom 1,311,000 2009 est.
21  South Korea 1,100,000 2011 est.
22  Qatar 1,038,000 2009 est.
23  India 825,600 2009 est.
24  Brazil 801,200 December 2011 est.
25  Azerbaijan 651,700 2009 est.
26  Malaysia 644,900 2009 est.
27  Oman 592,300 2009 est.
28  Italy 529,100 2009 est.
29  China 506,500 2011 est.
30  France 487,200 2009 est.
31  Germany 470,200 2009 est.
32  Indonesia 404,100 2009 est.
33  Colombia 400,700 2009 est.
34  Equatorial Guinea 395,000 2009 est.
35  Sudan 383,900 2009 est.
36  U.S. Virgin Islands 380,800 2009 est.
37  Japan 366,800 2009 est.
38  Belgium 353,000 2009 est.
39  Ecuador 333,400 2011 est.
40  Australia 312,600 2009 est.
41  Belarus 310,500 2009 est.
42  Taiwan 303,000 2010 est.
43  Thailand 269,100 2009 est.
44  Syria 263,000 2009 est.
45  Denmark 249,600 2010 est.
46  Sweden 243,200 2009 est.
47  Trinidad and Tobago 242,600 2009 est.
48  Spain 240,700 2009 est.
49  Bahrain 239,900 2009 est.
50  Argentina 238,100 2009 est.
51  Gabon 213,500 2009 est.
52  Republic of the Congo 211,800 2009 est.
53  Vietnam 210,500 2011 est.
54  Yemen 207,700 2009 est.
55  Aruba 206,400 2009 est.
56  Greece 181,600 2009 est.
57  Egypt 163,000 2009 est.
58  Brunei 153,000 2009 est.
59  Finland 133,600 2009 est.
60  Chad 115,000 2009 est.
61  Ukraine 114,000 2009 est.
62  Cameroon 101,300 2009 est.
63  Turkmenistan 97,430 2009 est.
64  Tunisia 91,200 2009 est.
65  Israel 86,010 2009 est.
66  Timor-Leste 86,000 2009 est.
67  Slovakia 78,940 2009 est.
68  Lithuania 76,510 2009 est.
69  Bulgaria 75,840 2009 est.
70  Romania 74,080 2010 est.
71  Peru 73,280 2009 est.
72  Cote d'Ivoire 70,800 2009 est.
73  Turkey 68,450 2009 est.
74  Philippines 60,460 2009 est.
75  South Africa 54,930 2009 est.
76  Chile 52,390 2009 est.
77  Poland 50,400 2009 est.
78  Portugal 49,650 2009 est.
79  New Zealand 47,200 2009 est.
80  Austria 46,020 2009 est.
81  The Bahamas 41,610 2009 est.
82  Croatia 36,080 2010 est.
83  Pakistan 29,840 2009 est.
84  Czech Republic 25,480 2009 est.
85  Morocco 25,090 2009 est.
86  Ireland 21,590 2010 est.
87  Puerto Rico 19,230 2009 est.
88  Hong Kong 18,750 2011 est.
89  Guatemala 15,300 2009 est.
90  Democratic Republic of the Congo 11,090 2009 est.
91  Serbia 11,000 2011 est.
92  Benin 10,840 2009 est.
93  Mauritania 10,000 2009 est.
94   Switzerland 9,851 2009 est.
95  Slovenia 8,958 2009 est.
96  Macedonia 8,594 2010
97  Kenya 8,610 2009 est.
98  Papua New Guinea 8,290 2009 est.
99  Cuba 6,882 2009 est.
100  Mongolia 5,834 2010 est.
101  Ghana 5,752 2009 est.
102  Bolivia 5,621 2010 est.
103  Latvia 5,160 2010 est.
104  Honduras 5,114 2009 est.
105  Senegal 4,550 2009 est.
106  Suriname 3,058 2009 est.
107  Bangladesh 2,770 2009 est.
108  El Salvador 2,315 2010 est.
109  Costa Rica 2,087 2009 est.
110  Uzbekistan 2,078 2009 est.
111  Kyrgyzstan 2,042 2009 est.
112  Fiji 1,857 2009 est.
113  Uruguay 1,395 2011 est.
114  Iceland 1,209 2009 est.
115  Somalia 1,109 2009 est.
116  Greenland 1,050 2009 est.
117  Georgia 1,008 2011 est.
118  Albania 1,004 2009 est.
119  Nicaragua 742 2009 est.
120  Moldova 741 2009 est.
121  Luxembourg 686 2009 est.
122  New Caledonia 648 2009 est.
123  Sierra Leone 500 2009 est.
124  Tajikistan 405 2009 est.
125  Zambia 360 2009 est.
126  Bosnia and Herzegovina 96 2009 est.
127  The Gambia 42 2009 est.
128  Liberia 23 2009 est.
129  Djibouti 19 2009 est.

end quote from Wikipedia under the heading:

http://en.wikipedia.org/wiki/List_of_countries_by_oil_exports

 

Also, I was amazed it cost 99 dollars to go from Victoria, B.C.,Canada to Port Angeles Washington for my Toyota Tundra Truck and just my wife and I. Oil prices on the ocean going Ferry must really be affecting prices. Also, likely this is affecting a lot of businesses that cater to the public on Vancouver Island since you can only reach there either by boat or plane from either Vancouver, Canada on the mainland or from Anacortes, Seattle, the San Juan islands or Port Angeles on the Main land U.S. there in Washington state. Also, it is possible to get there by Sea plane direct into Victoria harbor from places like Vancouver, Canada. I think Harbour air lines is one of the companies that does this. 

Here is an article about U.S. exports in 2012:

U.S. Was Net Oil-Product Exporter for First Time Since 1949

By Barbara Powell - Feb 29, 2012 2:52 PM PT

Daniel Acker/Bloomberg
A crude oil well site outside South Heart, North Dakota, on Feb. 10, 2012.
The U.S. exported more gasoline, diesel and other fuels than it imported in 2011 for the first time since 1949, the Energy Department said.
Enlarge image U.S. Was Net Oil-Product Exporter in 2011
Crude oil removed from a Fidelity Exploration & Production Co. well outside South Heart, North Dakota, on Feb. 10, 2012. Photographer: Daniel Acker/Bloomberg
Marchionne, Saleri, Morse's Own Words on Oil Prices
2:49
Feb. 29 (Bloomberg) -- Sergio Marchionne, chief executive officer of Chrysler Group LLC, Nansen Saleri, CEO of Quantum Reservoir Impact LLC, and Edward Morse, head of commodities research at Citigroup Global Markets Inc., offer their views on the rise in oil prices. This report also contains comments from Scott Clemons, chief investment strategist at Brown Brothers Harriman & Co.; Robert Hagstrom, a portfolio manager at Legg Mason Capital Management Inc., and Kevin Book, managing director at ClearView Energy Partners LLC. (Source: Bloomberg)
Shipments abroad of petroleum products exceeded imports by 439,000 barrels a day, the department said today in the Petroleum Supply Monthly report. In 2010, daily net imports averaged 269,000 barrels. U.S. refiners exported record amounts of gasoline, heating oil and diesel to meet higher global fuel demand while U.S. fuel consumption sank.
Oil demand in Latin America will climb 2.5 percent to 6.64 million barrels a day this year, while contracting 2.4 percent in Europe and 0.5 percent in North America, the Paris-based International Energy Agency said Feb. 10. Mexico’s use of U.S.- made gasoline was 44 percent higher last year than in 2010, Energy Department data show.
“There’s stronger global demand for clean fuels and stronger demand for fuel, outpacing production in places like South America,” said Sander Cohan, a global transportation fuels analyst and principal with Energy Security Analysis Inc. in Wakefield, Massachusetts.
Gasoline futures for March delivery on the New York Mercantile Exchange settled at $3.0423 a gallon today, up 11 percent in the past year. Heating oil was up 9 percent during that period to $3.188 a gallon.

Distillate Exports

Distillate shipments rose 30 percent from a year earlier to a record 854,000 barrels a day, and daily exports of finished gasoline and blending components jumped 57 percent to 526,000 barrels in 2011.
Refiners are expanding on the Gulf Coast and in the Midwest, even as unprofitable plants along the East Coast were shut. Operable capacity in the U.S. climbed 0.8 percent to 17.7 million barrels a day in December from a year earlier.
U.S. refineries in the Gulf Coast, where about half of U.S. capacity is located, operated at 88.8 percent last year, up from 88.6 percent in 2010.
“It helps keep refinery utilization rates up in this country,” Bill Day, a spokesman for Valero Energy Corp. (VLO) in San Antonio, said in a telephone interview. “Otherwise we would see what we’re seeing on the East Coast, where refineries are shutting.”
In the fourth quarter, Valero, the largest U.S. independent refiner with 14 North American plants, exported about 5 percent of its gasoline output and 17 percent of its heating oil and diesel production, Day said.

Export Forecast

The U.S. will ship abroad 350,000 barrels a day more petroleum products that it imports in 2012 and 320,000 barrels daily in 2013, according to the department’s Short-Term Energy Outlook report released on Feb. 7.
Gasoline demand in the U.S. sank 2.9 percent to 8.736 million barrels a day last year as pump prices averaged $3.521 a gallon, the highest in records dating back to 1919.
Total U.S. oil product demand fell 9.5 percent to 18.8 million barrels a day last year from 20.8 million in 2005, department data show.
“The reason we can export so much is demand in the U.S. is weak,” Cohan said. Since 2005, the U.S. has lost nearly 2 million barrels a day of total product consumption, he said.

Diesel Demand

Global demand for diesel is rising faster than for gasoline, prompting refiners to increase yields of distillate fuels. A barrel of crude refined in the U.S. yielded 31.2 percent distillate fuel in December, the most ever. Distillate exports reached 1.13 million barrels a day during the month as cold weather in Europe boosted demand. Shipments to the Netherlands doubled, the data show.
“This year was one of the most mild winters on record in the U.S. at a time when the winter weather in Europe was just atrocious,” said James Cordier, portfolio manager at OptionSellers.com in Tampa, Florida.
Total net crude and product imports fell 11 percent from a year earlier to 8.436 million barrels a day, the lowest level since 1995, department data showed. Domestic oil output rose 3.6 percent to 5.673 million barrels a day, an eight-year high.
To contact the reporter on this story: Barbara J Powell in Dallas at bpowell4@bloomberg.net
To contact the editor responsible for this story: Dan Stets at dstets@bloomberg.net

end quote from:
http://www.bloomberg.com/news/2012-02-29/u-s-was-net-oil-product-exporter-in-2011.html

If the U.S. exceeded oil imports with exports by 439,000 barrels a day this would mean we exported that year at least 439,000 times 365 = 160,235,000 barrels of oil we exported more than we imported that year.

However, the problem I might have with this might be that if we kept more oil here the cost of gasoline here might be lower than at the high level it presently is. Something to think about if I'm right about that. Since our country (and all countries) rise or fall on the cost of gasoline and diesel this is something to think about for everyone.

 

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