United States Now Largest Oil & Natural Gas Producer

Post date: Jul 14, 2015 2:39:08 PM

By Joe Massaro | Energy In Depth Published: July 7, 2015 9:49AM

Thanks to American ingenuity, the United States is now the largest producer of natural gas and oil in the world – let that sink in for a second. Just a decade ago the U.S. was in a state on energy scarcity and imports were the highest they had been in years. Now, for the first time in years the U.S. is closer to energy independence than ever before.

Thanks to hydraulic fracturing U.S. oil & gas operators have been able to tap into shale formation miles beneath the surface and unlock huge reservoirs of oil and natural gas.

By deploying this technology in business friendly states across the country like Ohio, Pennsylvania and West Virginia the U.S. has been able to cut their imports of natural gas to levels not seen in 28 years, the level since 1987. According to the Energy Information Administration, “U.S. net imports decreased 9 percent in 2014, continuing an eight-year decline.”

The decrease in natural gas imports into the U.S. has translated into energy savings for American households across the country. Take a look at New York, as recently as 2008 the state was importing more of its natural gas from Canada at a premium. Now after the development of Pennsylvania’s Marcellus Shale, there is more natural gas flowing from New York into Canada than the amount flowing into the state from Canada. A similar story is being told for domestic oil production as well.

When the U.S. became the world’s largest producer of oil it leap-frogged over other oil producing countries like Saudi Arabia and Russia. British Petroleum’s (BP) Chief Economist, Spencer Date, recently stated, “The implications of the shale revolution for the U.S. are profound.” He went on to say, “We are truly witnessing a changing of the guard of global energy suppliers.”

According to data from BP the U.S. saw oil production go up by 1.6 million barrels per day in 2014, for a total of 11.6 million per day on average. And, for the first time in 40 years, this spike in production propelled the U.S. to become the number one producer of oil in the world.

Much like increased natural gas production, oil production also led to American consumer savings. During 2014 the price per barrel of oil went from over $100 to under $60 solely because of U.S. production. Because of the decrease in oil prices American drivers are paying less at the pumps. For instance Columbus, Ohio had under $2 per gallon of gasoline for the first time in five years. In a recent study The American Automobile Association (AAA) found that Americans would be paying 40 cents more per gallon of gas than they’re paying now were it not for shale development.

Continued shale development across the country is continuing to provide Americans with family sustaining jobs and lower energy costs. But most importantly we now have global bragging rights for pioneering shale development and making the United States an energy superpower again.