According to the U.S. Energy Information Administration (EIA), America almost certainly has become the world’s largest oil-producing nation. The report does not show whether the development will help keep global crude prices low.
EIA experts wrote:
The United States likely surpassed Russia and Saudi Arabia to become the world’s largest crude oil producer earlier this year, based on preliminary estimates in EIA’s Short-Term Energy Outlook (STEO). In February, U.S. crude oil production exceeded that of Saudi Arabia for the first time in more than two decades. In June and August, the United States surpassed Russia in crude oil production for the first time since February 1999.
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Shale production is among the major reasons for America’s position. The report authors wrote:
The United States likely surpassed Russia and Saudi Arabia to become the world’s largest crude oil producer earlier this year, based on preliminary estimates in EIA’s Short-Term Energy Outlook (STEO). In February, U.S. crude oil production exceeded that of Saudi Arabia for the first time in more than two decades. In June and August, the United States surpassed Russia in crude oil production for the first time since February 1999.
These advantages, the experts wrote, should keep the United States in its number one position for the balance of this year and all of next. The report makes no prediction about the role America will have on global crude prices. Production problems, particularly in Venezuela could drive prices higher. Prices also will be threatened by sanctions against Iran.
The United States does get bragging rights as it moves into the top spot, whether it will affect the global balance of crude supply or demand much or not.
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