Peak Oil is You
Donate Bitcoins ;-) or Paypal :-)
Page added on November 9, 2014
U.S. Oil Exports Hit 57 Year High
The accelerating United States energy boom allowed America to record its highest level of oil exports in 57 years and its second highest level since 1920 in the month of July.
After becoming the world’s largest producer of natural gas in 2010, the United States also became the world’s largest producer of petroleum last month. With U.S. production and exports driving crude oil prices down and forcing other producers to crank up production to maintain cash flow.
The U.S. Energy Information Agency (EIA) has been compiling statistics on American and international energy trends since 1920. For 40 years through 2010, domestic energy production had been steadily trending down. But since the beginning of 2010, fracturing of shale to exploit “tight oil” has allowed the U.S. liquid fuels production to double to 8.5 million barrels per day (bpd) through July, 2014.
The rate of increase in the three months since July is truly staggering, as U.S. production leaped from 8.5 million bpd to an estimated 9 million bpd, according to Stratfor Global Intelligence.
The American supply shock to the upside has caused the price of oil to plummet by 25% in the longest streak of continuously falling prices in 13 years. International oil producers panicked as their export revenue withered. According to Stratfor, Libya cranked up production from about 200,000 bpd to more than 900,000 bpd. Saudi Arabia, Nigeria and Iraq also hit the accelerator pedal on production increases.
To put the impacts of the 3.5 million bpd annualized rate of global production increase in perspective, the International Energy Agency only projected that worldwide oil demand would grow by 700,000 bpd in 2014.
The only OPEC members with enough financial flexibility to reduce oil production voluntarily are the United Arab Emirates, Kuwait and Saudi Arabia. Libya, Algeria, Iraq, Iran, Nigeria and Venezuela all need to maximize oil output (at high prices) to finance their budgets and social spending programs. But rather than leading in cuts, Saudi Arabia is prioritizing a greater market share over higher prices, according to Stratfor.
The 401,000 bpd level of U.S. crude oil exports in the month of July must have risen over the last three months in line with production increases. Facing a domestic oil glut, President Obama loosened the four-decade ban on U.S. oil exports on July 24. Prior to the ruling, most U.S. crude oil exports were limited to Canada. But it appears some oil exported to Canada was quietly re-exported to Switzerland, Spain, Italy, and Singapore.
Support for energy production in the U.S. will continue to grow as the price of gasoline continues to fall. At a sub-$3 a gallon price, energy analyst Sue Chang estimated that American consumers will save about $250 million per day. With the summer driving season over and the typical winter drop in demand beginning, the price of gasoline is expected to drop even further. This could provide a happy boast to discretionary income during the holiday shopping period.
33 Comments on "U.S. Oil Exports Hit 57 Year High"
Apneaman on Sun, 9th Nov 2014 7:46 pm
Another story to sooth the emotions of Breitbart’s infantile readers. If anyone has doubts simply read the comments section there and you will quickly see who they are writing for.
jjhman on Sun, 9th Nov 2014 8:01 pm
Is there a less meaningful statistic than US crude oil exports?
Maybe its the amount re-exported out of Canada where we export about 200,000 bpd LESS than we import from Canada.
Maybe more relevant is the statistic that ALL of the oil exported from the US thru Canada to other countries is, by law, oil that we imported, not domestically produced oil.
If you think this author is a bozo, as I do, you should see the comments from his followers on Breitbart News.
Perk Earl on Sun, 9th Nov 2014 10:37 pm
“Support for energy production in the U.S. will continue to grow as the price of gasoline continues to fall.”
That sentence from the last paragraph of the article makes it seem like continued increases in US oil/gas production is linked to consumer appreciation of lower prices. Huh? Actually it needs to make a profit, and we’ll just have to wait and see how new lower oil prices influences the trend to more or less drilling.
dubya on Sun, 9th Nov 2014 11:59 pm
Alternative Headline:
US burns all it’s extracted oil – occasionally there is a trivial export,like this week; the last one being in 1920.
Poordogabone on Mon, 10th Nov 2014 3:17 am
“The 401,000 bpd level of U.S. crude oil exports in the month of July must have risen over the last three months in line with production increases.”
Just to put that exported 401,000 bpd in perspective, the US imported in july 9,472,000 bpd of “crude oil and products”.
platinumshore on Mon, 10th Nov 2014 4:52 am
Seems to me the Shale companies are getting much more efficient at securely debt, rather than more efficient at making production… Global investment in oil has increased by 180% in last 5 years, resulting in a 14% increase in production.. lets celebrate.. not.
Also again (but to be fair energy forecasters don’t help the situation) no mention of net energy value of domestically produced oil… kind of important going forward.
Dumbest article yet this year.
Davy on Mon, 10th Nov 2014 5:38 am
Perk mentioned article – “Support for energy production in the U.S. will continue to grow as the price of gasoline continues to fall.”
Perk, sounds like the old American dream that like George Carlin said “you have to be asleep to enjoy” or something like that. Where the hell is George when you need him?
More of the “wish upon a star” and it will come true economics. You know it is ok to have you cake and eat it these days. Society has been submersed in this thinking since the advent of television and slick marketing adds. Industrial propaganda is stronger than any propaganda the Nazi’s had. This industrial propaganda is subtle, appears harmless, and is pervasive. It is now global at a time when the opposite is needed. Sounds like a psychological trap on a global scale.
rockman on Mon, 10th Nov 2014 6:29 am
“The 401,000 bpd level of U.S. crude oil exports…”. Since US consumers don’t buy oil this number is of little relevance. US consumers don’t compete for oil. The US consumer buys gasoline, diesel, etc. IOW those are the commodities the US consumers compete with other countries since there is no ban on such exports. According to the EIA last August the US exported 3 MILLION BARRELS PER DAY of refined products. IOW despite “record high oil exports” the US exports almost 8X as much refined products as it does oil.
So the basic question: are politicians and the MSM intellectually unable to do a 30 second Internet search my 14 yo daughter could do to find the FACTS stated above or are they being dishonest and intentionally misleading the public?
Lawfish on Mon, 10th Nov 2014 7:19 am
Remember, you can’t spell “statistics” without “statist.”
Kenz300 on Mon, 10th Nov 2014 9:27 am
Right Wing fossil fuel promoting agenda…………
shortonoil on Mon, 10th Nov 2014 9:42 am
“Support for energy production in the U.S. will continue to grow as the price of gasoline continues to fall.”
We have calculated that it requires about 200 new wells a month in the Bakken to maintain present production levels. We have also calculated that at a price of $65/barrel cash flow would decline enough to reduce drilling to 130 wells per month. Declining price is not conducive to increased oil production! Gasoline prices are falling because crude prices are falling (71% of the cost of gasoline is the cost of the crude). The above statement makes absolutely no sense. It is absurd to the point of being distressing. It is evident that it was written in a desperate attempt to placate a highly, an increasingly stressed market.
As oil prices continue their descent, expect more ridiculous comments of this nature. This will eventually develop into a Calliope of befuddling comments, and assurances “that all is well”.
http://www.thehillsgroup.org/
Northwest Resident on Mon, 10th Nov 2014 10:07 am
“This will eventually develop into a Calliope of befuddling comments and assurances “that all is well”.”
As far as I can tell, it already has, and some time ago. It more conventional terms, the bullshit is very deep indeed, and getting deeper all the time.
And Calliope? She’s got a chorus line of fat ladies all revving up their vocal chords in unison, getting ready to lead them in song one last time, after which she’ll turn them all into magpies.
Davy on Mon, 10th Nov 2014 10:14 am
Short said – Calliope of befuddling comments.
I love it short and NR.
We are truely at Peak everything and extreme entropy of the truth. What next I ask????!!!
Dredd on Mon, 10th Nov 2014 10:17 am
Reminds me of the Fugs hit “I’m Doing All Right” (http://www.youtube.com/watch?feature=player_detailpage&v=NUCjORJhQZQ).
Deja vu all over the place (Oilandia: A Coast Along the Gulf of Oil-Qaeda – 2).
Perk Earl on Mon, 10th Nov 2014 10:20 am
“Perk, sounds like the old American dream that like George Carlin said “you have to be asleep to enjoy” or something like that. Where the hell is George when you need him?”
Yeah Davy, I’m sure GC if he was still around could spin a good comedic yarn on this type of odd perspective.
Reminds me of the experience recounted by Max Kaiser. He said during college he would use 3 card monty to bilk tourists out of their cash (to pay for his education), but he said, “I would always let them win the last game and sure enough even though they had lost a lot of money, they would celebrate that last victory like it was somehow much more special.”
What is even more unfortunate is the fact that in spite of producing more oil and NG than other countries, we still have to import! That does not bode well for the future after fracking ceases.
Speaking of where is George?, where the heck is NWR? Did he take a vacation in some remote jungle? Maybe he’s on that show ‘Survivors’ and is incommunicado.
Mike999 on Mon, 10th Nov 2014 10:37 am
Thanks Hybrids, and EV’s for helping Reduce US Demand for Gas and Oil.
You the real MVPs.
Northwest Resident on Mon, 10th Nov 2014 10:47 am
“What next I ask????!!!”
Don’t ask… 🙂
We’ve had a whole series of world-class events cascading down around us these last several weeks. Plunge in oil price, Saudi announcement of price cuts, end of “official” QE followed the same day by Alan Greenspan’s WJE comments including that the bubble economy needs to be “brought down” in order to fix it, stock market bouncing ball, Japan’s move to one-hundred-percent monetize its debt. Yeah, what IS next?!!!
All the commentary that I read on these and other events accept the premise that TPTB are doing everything they can do maintain and prolong BAU. Which, I accept as true to a certain extent. But what the commentaries don’t seem to recognize — at least not directly — is that everything being done can be neatly summed up with this one phrase: “short term measures meant to buy a little more time”.
Japan’s latest move is case in point. Clearly there is no thought given to long term consequences. They’re just trying to keep it all from collapsing down on them for another few months or so — that’s all they need, or so it seems.
Here’s a really good article (I think) that details just how desperate Japan’s move is, and the implications for the rest of the global economy:
The BOJ Jumps The Monetary Shark—–Now The Machines, Madmen And Morons Are Raging
“Never mind that the BOJ will now escalate its bond purchase rate to $750 billion per year—-a figure so astonishingly large that it would amount to nearly $3 trillion per year if applied to a US scale GDP.”
http://davidstockmanscontracorner.com/the-boj-jumps-the-monetary-shark-now-the-machines-madmen-and-morons-are-raging/
Northwest Resident on Mon, 10th Nov 2014 10:48 am
Perk Earl — Still here! Thanks for asking!!
JuanP on Mon, 10th Nov 2014 11:20 am
Hurray! Now we will have a few more pennies to waste in guns, ammo, and stupid wars. How many times this income do we spend in military agressions all over the world?
It no longer matters how much oil or money we make in the USA. This country is collapsing and will fall like a rock before this decade is over. The more energy and money we have, the more we will waste making enemies around the world.
The USA is, by far, its own worst enemy. We will completely destroy ourselves. There’s no Russian or Chinese help needed. Americans are their own worst enemies. More resources only make us more corrupted.
Plantagenet on Mon, 10th Nov 2014 11:27 am
It’s almosr routine now for the Obama admission to waive the law forbidding oil exports. BP just announced they are going to export law without getting a waiver
If the Obama people won’t enforce the law then US oil exports are going to keep growing
Perk Earl on Mon, 10th Nov 2014 1:42 pm
“Perk Earl — Still here! Thanks for asking!!”
It’s a small group of good people that actually understand what is going on so we need everybody. When shtf and the masses are rioting, at least there will be somewhere to go to chit chat with like minded people that are hopefully taking it in stride.
“Never mind that the BOJ will now escalate its bond purchase rate to $750 billion per year—-a figure so astonishingly large that it would amount to nearly $3 trillion per year if applied to a US scale GDP.”
I agree, NWR – total desperation. We’ll see how it plays out but it seems like what Japan has done in this recent greatest height of desperation moves must either be or close to the last gasp they can throw at their dismal economy to stay above the waterline just a little bit longer. They’re even kick-starting two of their nuclear power plants into operation (in spite of what happened to Fukushima) throwing caution to the wind to keep the lights on.
I keep wondering what actually occurs when a government goes bust. Do they toss out the old currency, walk away from their debts and start over? I just haven’t got a clue. But in any case, Japan appears to be the bell-weather of the leading edge of post peak cheap oil collapse.
Davy on Mon, 10th Nov 2014 1:52 pm
Perk, when a major country goes bust like Japan the entire global system will implode because of the contagion of systematic risk. We will get a Lehman moment and liquidity will dry up. This is the reason this Japanesse deal is so dangerous.
Perk Earl on Mon, 10th Nov 2014 1:59 pm
Here is an article on the restart of Japan’s nuclear plants:
http://www.abc.net.au/am/content/2014/s4124323.htm
Japan restarts its nuclear reactors four years after Fukushima
ELIZABETH JACKSON: Japan has decided to restart its nuclear reactors, almost four years after the devastating tsunami which led to them being shut down
MATTHEW CARNEY: The decision is a win for prime minister Shinzo Abe. He’s been pushing for a nuclear restart as the costs of imported oil and gas have been threatening the country’s fragile economic recovery.
CHIZURU MUTO (translated): It’s been 418 days since we had no nuclear and we’ve passed summer and winter. Once a restart happens, everybody will try to follow and it’s unforgivable.
There are active volcanos within 60 kilometres of the Sendai plant. Scientists say there’s been much more seismic activity this year.
Perk Earl on Mon, 10th Nov 2014 2:02 pm
“Perk, when a major country goes bust like Japan the entire global system will implode because of the contagion of systematic risk.”
I’m sure that is a possibility. Maybe the IMF will come to the rescue with funds? I think just as there have been desperate fiscal efforts nationally, there could also be some to play out internationally. In any case, it seems like the edge is getting close and we’ll have ringside seats to see how it plays out.
Davy on Mon, 10th Nov 2014 2:24 pm
Perk, the problem is the tool have been used. There is already too much debt. Japan is too interconnected industrially and financially. Their issues are extreme. How would more debt fix debt like Japan has.
At some point these tools, that were the last tools in the tool box become ineffective. The only option left is a global collapse. How bad and at what level a reboot is a question no one can answer. There is no historical references. The complexity and interconnectedness is so great. The population overshoot extreme. Militaries bristling with war machines. That is a pretty volatile mix in my mind.
Northwest Resident on Mon, 10th Nov 2014 2:37 pm
Davy — I’m afraid that when every last trick and desperate measure has been tried and failed, there will only be one “trick” left in the bag: war. I wish you wouldn’t bring that subject up. It kind of upsets my aura of calm and self-assuredness and puts a little pressure on that otherwise impenetrable bubble of doomer-fortified invincibility that I have developed.
Davy on Mon, 10th Nov 2014 2:50 pm
It definitely will be the war to end all wars as far as industrial man is concerned. We may enter a period of martial law and militarism. I am not sure why more is not said about this situation. I guess it is still fringe doomer talk. I see it is completely logical.
Northwest Resident on Mon, 10th Nov 2014 3:10 pm
I predict lots and lots of local/regional wars, but nothing on the scale of WWI or WWII, or even close. Not even anything on the scale of the Iraq war. Reason why: No gas dude. The amount of fuel required to get all those jets flying and all those tanks rolling and all those ships navigating, not to mention all those millions of Humvees IDF-finding, would just consume too much damn fuel. Of course, the leaders of our world’s nations and TPTB could all be suicidal and decide to go out with a real big bang. But I doubt that.
Perk Earl on Mon, 10th Nov 2014 7:15 pm
“Japan is too interconnected industrially and financially. Their issues are extreme. How would more debt fix debt like Japan has.”
More debt will certainly not fix Japan, agreed Davy. I’m just thinking there may be another hail mary pass in the playbook, but then again maybe this is Japan’s last gasp desperation double reverse, flea-flicker, Hail Mary pass deep in the end zone, but even if that works it’s only for a little more time.
“I predict lots and lots of local/regional wars, but nothing on the scale of WWI or WWII, or even close. Not even anything on the scale of the Iraq war. Reason why: No gas dude.”
Yeah, NWR, that’s if cooler heads prevail and the nuclear powers decide as all hell breaks loose not to blame each other. I hope you’re right – just go at it locally because oil is too expensive. That’s actually pretty funny from an ironic viewpoint because it’s the oil that got us to this point of complexity, i.e. M1A1 tanks, F-22’s etc.
Davy on Mon, 10th Nov 2014 7:40 pm
Perk, Hail Mary is what I thought 2008 was. You know, what do I know? Maybe the momentum of the system will drag on much longer than any of us feel possible then all of a sudden BOOM it is gone. It is an amazing topic to opine.
I know the corns here tire of this doom but I feel it is of the highest importance to discuss. We must promote preparations and how else but word of mouth. A plan B is essential. A life boat for a sinking ship. Think of all the innocents that have no clue to what is coming. It is our duty to hash this out for mankind in our own little way.
I have come to believe only a few percent of the population is in a position to discuss these issues and many of us here are part of that. Maybe I am being grandiose and delusional but I see little evidence even among the highest levels of academia that there is a mental connection to the severity of what is ahead. Forget the GP & MSM they are lost in the zone. A zone of fantasy and the superficial.
GregT on Mon, 10th Nov 2014 7:45 pm
I predict that TPTB will let things get badly enough out of control, that the masses will beg for a one world government, and a one world banking system. They have been talking about this for a very long time. The only things still standing in their way are the areas in the ME that are still stable, Russia, and China.
War is the next step.
GregT on Mon, 10th Nov 2014 7:53 pm
Sorry, should add, Putin has made it very clear that Russia does not want War, but will go to War if she is bypassed in TPTBs NWO. TPTB have no interest in Russia playing any part in their NWO.
War is the next step. It has already begun.
GregT on Mon, 10th Nov 2014 8:13 pm
Also Guys,
The main problem with the world’s economies, is that we are hitting limits to growth. Without central banks creating money out of thin air with interest attached, there would be no need for growth. The bankers have created this problem, and as always, they will capitalize on it. Never let a good crisis go to waste.