• 25 mins Kinder Morgan Warns About Trans Mountain Delays
  • 7 hours India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 12 hours Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 16 hours Russia, Saudis Team Up To Boost Fracking Tech
  • 22 hours Conflicting News Spurs Doubt On Aramco IPO
  • 23 hours Exxon Starts Production At New Refinery In Texas
  • 1 day Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 2 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 2 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 2 days China To Take 5% Of Rosneft’s Output In New Deal
  • 2 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 2 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 2 days VW Fails To Secure Critical Commodity For EVs
  • 2 days Enbridge Pipeline Expansion Finally Approved
  • 2 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 2 days OPEC Oil Deal Compliance Falls To 86%
  • 3 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 3 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 3 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 3 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 3 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 3 days Aramco Says No Plans To Shelve IPO
  • 5 days Trump Passes Iran Nuclear Deal Back to Congress
  • 6 days Texas Shutters More Coal-Fired Plants
  • 6 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 6 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 6 days Chevron Quits Australian Deepwater Oil Exploration
  • 6 days Europe Braces For End Of Iran Nuclear Deal
  • 6 days Renewable Energy Startup Powering Native American Protest Camp
  • 7 days Husky Energy Set To Restart Pipeline
  • 7 days Russia, Morocco Sign String Of Energy And Military Deals
  • 7 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 7 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 7 days India Needs Help To Boost Oil Production
  • 7 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 7 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 7 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 7 days District Judge Rules Dakota Access Can Continue Operating
  • 8 days Surprise Oil Inventory Build Shocks Markets
  • 8 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
Alt Text

How Vulnerable Is The Electrical Grid?

Hurricane Maria knocked out the…

Alt Text

3 Stocks To Play Today’s Hottest Market

Big automakers have jumped on…

Alt Text

China Takes Aim At The Petrodollar

In a potentially disrupting move…

Daniel J. Graeber

Daniel J. Graeber

Daniel Graeber is a writer and political analyst based in Michigan. His work on matters related to the geopolitical aspects of the global energy sector,…

More Info

What Happens After the Boom?

Net U.S. imports of energy in 2013 were at their lowest level in more than 20 years because of domestic oil and gas production from North Dakota and Texas. Policymakers say it's time to capitalize on those reserves, but the sustainability of the energy boom may present long-term risk.

The Energy Information Administration said the rate at which overall energy imports declined last year was faster than the previous year. At the same time, the rate of export growth slowed while crude oil production increased by 15 percent, the same pace for 2012.

North Dakota oil production in January increased 26 percent year-on-year to around 933,000 barrels per day. Analysis from Wood Mackenzie shows production from the Bakken and Three Forks reserve areas will average 1.1 million bpd in 2014 and reach 1.7 million bpd in 2020.

Related Article: American Foreign Policy and The Last Stage of Fossil-Fuel Addiction

Last week, North Dakota Gov. Jack Dalrymple told delegates at an economic summit in Chicago that his state recorded the strongest personal income growth for any U.S. state. The national average was 2.6 percent growth while the state's average personal income increased 7.6 percent.

For Texas, EIA said oil production in January increased at the same rate year-on-year as North Dakota's, but reached 89 million bpd, the highest level since at least the 1980s.

The U.S. Department of Commerce said oil and gas extraction were the main contributors to earnings growth in states like North Dakota and Texas last year. Earnings growth rates in each of those states outpaced the national average not only in 2013, but in each of the four years since the onset of the recession.

A proposal outlined this week by House Budget Committee Chairman Paul Ryan puts U.S. oil and gas production at the center of a plan he says will help balance the federal budget.  Rep. Doc Hastings, R-Wash., chairman of the House Natural Resources Committee, said the proposal capitalizes on what's already the second largest source of revenue for the U.S. Treasury.

Related Article: U.S. Taking on More Saudi Oil despite Shale Glut

"It prioritizes expanded American energy production and recognizes that new energy development is one of the best ways to raise new revenue, put Americans back to work, bolster the economy, lower gasoline prices, and create good-paying jobs," he said.

By next year, North Dakota and Texas oil production should help the national level reach 9.2 million bpd. That's nearly 10 percent more than the estimate for 2013, but 400,000 bpd less than the highest historical annual average of 9.6 million bpd set in 1970.

Former Federal Reserve Chairman Alan Greenspan warned of "irrational exuberance" before the so-called Dot-com bubble burst in the 1990s. By 2020, the International Energy Agency said Middle East oil producers will again dominate the global energy sector as the U.S. oil boom begins to fade. While President Obama's energy policy has its critics, an "all-of-the-above" policy may be the best bet to hedge.

By Daniel J. Graeber of Oilprice.com




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News