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America is set to surpass Saudi Arabia in a “remarkable” oil chair

The United States will surpass Saudi Arabia later this year in exports of oil, natural gas liquids and petroleum products, such as gasoline, according to the energy research company Rystad Energy. The milestone driven by the transformative shale tree would make the United States the world's leading exporter of oil and liquids. It has never happened since Saudi Arabia started selling oil abroad in the 1950s, Rystad said in a report Thursday. "It's nothing less than remarkable," says Ryan Fitzmaurice, energy strategist at Rabobanken. "Ten years ago nobody thought it could happen." The expected breakthrough reflects how the technology has transformed the global energy landscape. Drilling innovations have opened huge turns of oil and natural gas resources that had been caught in slate oil fields in Texas, North Dakota and elsewhere. US oil production has more than doubled over the past decade to all-time highs. The United States is now pumping more oil than any other country, including Russia and Saudi Arabia. "The slate boom has driven incredible increases in production," says Fitzmaurice. "US production is outside the tables." With ample delivery home, the congress in 201 5 lifted the 40-year oil export ban. Overseas oil sales have exploded ever since. And the US Gulf Coast is struggling to build facilities that can handle growing foreign demand for US crude oil. "Excessive fossil fuels from America will find plenty of eager buyers in fast-growing Asia" Per Magnus Nysveen, senior partner at Rystad Energi, wrote in the report. "Oil dominance" Today,…

The United States will surpass Saudi Arabia later this year in exports of oil, natural gas liquids and petroleum products, such as gasoline, according to the energy research company Rystad Energy.

The milestone driven by the transformative shale tree would make the United States the world’s leading exporter of oil and liquids. It has never happened since Saudi Arabia started selling oil abroad in the 1950s, Rystad said in a report Thursday.

“It’s nothing less than remarkable,” says Ryan Fitzmaurice, energy strategist at Rabobanken. “Ten years ago nobody thought it could happen.”

The expected breakthrough reflects how the technology has transformed the global energy landscape. Drilling innovations have opened huge turns of oil and natural gas resources that had been caught in slate oil fields in Texas, North Dakota and elsewhere.

US oil production has more than doubled over the past decade to all-time highs. The United States is now pumping more oil than any other country, including Russia and Saudi Arabia.

“The slate boom has driven incredible increases in production,” says Fitzmaurice. “US production is outside the tables.”

With ample delivery home, the congress in 201

5 lifted the 40-year oil export ban. Overseas oil sales have exploded ever since. And the US Gulf Coast is struggling to build facilities that can handle growing foreign demand for US crude oil.

“Excessive fossil fuels from America will find plenty of eager buyers in fast-growing Asia” Per Magnus Nysveen, senior partner at Rystad Energi, wrote in the report.

“Oil dominance”

Today, Saudi Arabia exports about 7 million barrels of crude oil, along with 2 million barrels of natural gas liquids and petroleum products, according to Rystad. In comparison, the US exports about 3 million barrels a day of crude oil and another 5 million barrels per day of natural gas liquids and petroleum products.

Rystad expects the gap to disappear this year, although Saudi Arabia would retain a comfortable lead as the world’s largest exporter of crude oil alone.

 US oil production has more than doubled over the past decade, paving the way for raw materials to be shipped abroad. The Congress lifted a 40-year ban on oil exports in 2015.

The Permian basin in West Texas has become the epicenter of the slate boom. Technological progress has made it possible for companies to profitably drill at lower and lower prices.

ExxonMobil ( XOM ) which was slow for the slate game, said this week as its high production in the Permian Basin can generate an average yield of more than 10% – even at just $ 35 a barrel. Exxon now plans to produce more than 1 million barrels per day from Permian in 2024 – up nearly 80%.

“Increased profitable shale production and a robust global appetite for light oil and gasoline are ready to take the US to a position of oil dominance over the next few years,” said Nysveen.

National Security, Environmental Impact

That dominance means that the United States can increasingly rely on oil pumped at home.

Earlier this year, the Energy Department’s statistical department predicted that the United States will export more energy than it imports by 2020. It has not happened since 1953.

It has important national security implications. While the United States still needs to import oil to run its economy, it is no longer equal to foreign oil as it once was. At the same time, China imports more oil than ever before.

But American energy dominance carries environmental impact.

A new report from Oil Change International warned that the new US oil and gas development could release the same amount of carbon dioxide as almost 1,000 coal-fired power plants. The group called it a “climate catastrophe” – right at the worst time.

And just this week, the Solomon Islands fought with an oil spill caused by a ship carrying hundreds of tons of fuel oil. The oil spill has contaminated water near a UNESCO World Heritage Site.


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