The US already produces 40% more oil than Saudi Arabia, and the gap continues to widen. This situation, which seemed unimaginable less than 10 years ago, has become a reality thanks to the success of fracking (hydraulic fracturing) and shale oil (shale oil) in the United States. The American nation has achieved a record of daily production that no other country has consistently achieved over time.
Today, the US is producing more than 13 million barrels of crude oil every day, an impressive figure. To put this into context, the total production of oil in the world is around 100 million barrels a day. With these figures, the US accounts for more than 13% of all global production, while Saudi Arabia has fallen below 10% of global pumping share.
This milestone for the US oil industry is mainly due to two key factors. First, the success of the technique of fracking and extraction of shale oil, a revolution that began in 2014 and that today could be reaching maturity. In 2012, crude oil production in the United States barely reached 6 million barrels, compared to the 13.3 million it currently produces every day.
On the other hand, Saudi Arabia is bearing much of the production cuts as the de facto leader of the Organization of the Petroleum Exporting Countries (OPEC). Riyadh has reduced its pumping to relatively low levels. As a result, the United States extracts 44% more oil daily than the country that has historically dominated the oil market.
It is important to note that Saudi Arabia has the capacity to produce much more oil, but prefers to keep prices afloat by reducing supply and receiving a little more per barrel. This strategy could gradually unwind in the coming months, according to the International Energy Agency (IEA) in its latest monthly oil report.
K. Tovar
Source: Eleconomista
(Reference image source: Grant Durr, Unsplash)
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