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Page added on June 16, 2016
Shale revolution also behind stronger dollar
BP Plc Group Chief Economist Spencer Dale says:
-U.S. shale revolution means U.S. now produces more than 90 percent of its energy needs domestically, up from two-thirds a decade ago.
-Despite lower investment in price downturn, BP sees U.S. gaining full energy self-sufficiency in early 2020s as country already world’s top oil and gas producer.
-Half of the wide U.S. current account gaps of 2005-2006 stemmed from energy imports, which have declined sharply to lowest levels since mid-1990s.
-Shale oil and gas output has produced ‘a fundamenetal shift in the structure of the U.S. economy’ and could in part explain why the dollar has been strengthening in recent years as energy imports fall.
7 Comments on "Shale revolution also behind stronger dollar"
rockman on Thu, 16th Jun 2016 5:58 pm
“U.S. now produces more than 90 percent of its energy needs domestically, up from two-thirds a decade ago.” More rediculous bullsh*t aimed at folks that can’t do a simple net search.
The US produces very slightly less the the NG it consumes and nothing remotely close to 90% of the oil it consumes.
Nony backsliding on Thu, 16th Jun 2016 8:15 pm
They are talking about “energy”, not just oil and gas. 90% self sufficiency (actually 91%) is correct.
Add in coal, NGLs and liquid refined products trade (net exports). Add in electricity trade (98% self sufficient–2% imports, see any EIA monthly review). Those, along with the ~95% gas production, are enough to offset the low self sufficiency in oil (~60% self sufficient). Do a weighted average of all the energies together and you get 91% self sufficiency (9% net imports).
This EIA Today in Energy post has more explanation:
http://www.eia.gov/todayinenergy/detail.cfm?id=25852
Boat on Thu, 16th Jun 2016 9:22 pm
Nony,
Nice to see some common sense. Welcome bk.
Poordogabone on Thu, 16th Jun 2016 10:09 pm
“This EIA Today in Energy post has more explanation:
http://www.eia.gov/todayinenergy/detail.cfm?id=25852”
We are more likely at 70% if you eliminate the double counting and use net energy. Ethanol for instance has close to 0 Btu in net energy.
Nony backsliding on Thu, 16th Jun 2016 11:01 pm
biomass totals 5% of production (and is not all liquids, includes wood chips and the like).
Besides any oil/gas used to make the biofuels is de facto counted as consumption. So it’s not double counting when you are doing a ratio of consumption to production.
Where did you get 70% from? Just shooting in the air? Can you back it up with analysis and sources?
shortonoil on Fri, 17th Jun 2016 6:47 am
If piling up $trillions in debt that can never be repayed is strengthening the dollar this idiot knows as much about economics as he knows about energy; which is almost nothing.
Shale oil provides almost no energy to the economy because at least 30% of it can not produce fuels. It has an API greater than 50:
http://www.nrcan.gc.ca/sites/www.nrcan.gc.ca/files/energy/images/eneene/sources/petpet/images/refraf1-lrgr-eng.png
Liquid hydrocarbons that do not participate in a combustion process do not supply energy; they are used to make things like plastic pipe. America will surely become plastic pipe independent, its chances of becoming energy independent from Shale are zero.
The idea behind this article is to keep telling the stupid sheep that they are getting rich, right down to the point where they starve to death. Anyone who buys this can automatically be put in the SS (stupid sheep) category! If the shoe fits, wear it!
shortonoil on Fri, 17th Jun 2016 6:58 am
” Besides any oil/gas used to make the biofuels is de facto counted as consumption. So it’s not double counting when you are doing a ratio of consumption to production.”
The comment was about net energy, not about a ratio of consumption to production. What a moron!