Oil Boom: US Exports More Oil Than It Imports for First Time in 75 Years
For the first time in 75 years, the United States has once again became a net oil exporter last week, notching a clear win for President Donald Trump’s stated goal of national “energy independence.”
Bloomberg reported the shift from net importer to exporter is a result of the unprecedented boom in American oil production, with the top states being Texas, North Dakota, Alaska, California and New Mexico.
The U.S. had been a net oil importer since 1949, with the highest volume occurring in 2005 at 14 million barrels per day.
US Is Net Oil Exporter for First Time in 75 Years. Crazy chart, the impact of the shale oil boom on world affairs is quite dramatic and not talked about at all in silicon valley. pic.twitter.com/N8ETx98N4Y
— JJ Maxwell (@jjmaxwell4) December 8, 2018
The new status as net exporter comes despite the country only having one terminal capable of loading supertankers: the Louisiana Offshore Oil Port.
It is on pace to load more oil in December than it has in any other month, according to Bloomberg.
Nine more terminals able to load supertankers are being planned.
Reuters reported that much of the current boom has been fueled by the fracking revolution, allowing crude oil to be extracted from shale.
In July, the U.S. oil production surpassed 11 million barrels per day for the first time ever.
The nation has added nearly 1 million bpd in production since November 2017 thanks to rapid increases in shale drilling, the news outlet added.
“I don’t think production is plateauing at 11. It’s fully expected to grow beyond 11 – we won’t be topping out there,” said Scott Shelton, a broker at ICAP in Durham, North Carolina.
Bloomberg noted, with America’s new status as net exporter, the power of the OPEC cartel has been diminished, “undercutting one of the major geopolitical forces of the last half-century.”
“We are becoming the dominant energy power in the world,” said Michael Lynch, president of Strategic Energy & Economic Research.
“But, because the change is gradual over time, I don’t think it’s going to cause a huge revolution, but you do have to think that OPEC is going to have to take that into account when they think about cutting.”
U.S. exports are likely to increase in the years ahead with new oil pipelines planned in the Permian region, which encompasses Texas and New Mexico.
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