• 2 hours OPEC, Russia Said To Announce Oil Pact Extension On Nov 30
  • 5 hours Wintershall And LetterOne In Talks For $12B Oil, Gas Merger
  • 7 hours India Exempts State Oil Firms Mergers From Competition Approval
  • 9 hours Turkey Targets $5B Investment In Wind Energy By End-2017
  • 11 hours Weatherford Looks To Sell Assets To Ease Some Of $8B Debt
  • 12 hours OPEC Set To Move Fast On Cut Extension Decision
  • 14 hours Nigeria Makes First Step Away From Oil
  • 1 day Russia Approves Profit-Based Oil Tax For 2019
  • 1 day French Strike Disrupts Exxon And Total’s Oil Product Shipments
  • 1 day Kurdistan’s Oil Exports Still Below Pre-Conflict Levels
  • 1 day Oil Production Cuts Taking A Toll On Russia’s Economy
  • 1 day Aramco In Talks With Chinese Petrochemical Producers
  • 2 days Federal Judge Grants Go-Ahead On Keystone XL Lawsuit
  • 2 days Maduro Names Chavez’ Cousin As Citgo Boss
  • 2 days Bidding Action Heats Up In UK’s Continental Shelf
  • 2 days Keystone Pipeline Restart Still Unknown
  • 2 days UK Offers North Sea Oil Producers Tax Relief To Boost Investment
  • 2 days Iraq Wants To Build Gas Pipeline To Kuwait In Blow To Shell
  • 2 days Trader Trafigura Raises Share Of Oil Purchases From State Firms
  • 2 days German Energy Group Uniper Rejects $9B Finnish Takeover Bid
  • 3 days Total Could Lose Big If It Pulls Out Of South Pars Deal
  • 3 days Dakota Watchdog Warns It Could Revoke Keystone XL Approval
  • 3 days Oil Prices Rise After API Reports Major Crude Draw
  • 3 days Citgo President And 5 VPs Arrested On Embezzlement Charges
  • 3 days Gazprom Speaks Out Against OPEC Production Cut Extension
  • 3 days Statoil Looks To Lighter Oil To Boost Profitability
  • 3 days Oil Billionaire Becomes Wind Energy’s Top Influencer
  • 3 days Transneft Warns Urals Oil Quality Reaching Critical Levels
  • 4 days Whitefish Energy Suspends Work In Puerto Rico
  • 4 days U.S. Authorities Arrest Two On Major Energy Corruption Scheme
  • 4 days Thanksgiving Gas Prices At 3-Year High
  • 4 days Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 4 days South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 4 days Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 4 days Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 5 days Iraq Steps In To Offset Falling Venezuela Oil Production
  • 5 days ConocoPhillips Sets Price Ceiling For New Projects
  • 7 days Shell Oil Trading Head Steps Down After 29 Years
  • 7 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 7 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
Alt Text

Oil Prices Stuck Ahead Of OPEC Meeting

Oil prices are holding steady…

Alt Text

Who's Next? Venezuela's Collapse Puts These Nations At Risk

While investors have been ignoring…

Alt Text

Tesla To Spike, Then Crash

Electric car giant Tesla is…

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?

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