US world’s biggest oil producer

According to the International Energy Agency (IEA) and the Bank of America, the US is now the world’s largest oil and natural gas liquids producer. US production of crude oil, along with liquids separated from natural gas, surpassed all other countries with daily output exceeding 11 million bbls during the first five months of this year.

The US became the world’s largest natural gas producer in2010. The US also ranks as the world’s largest producer of oil and natural gas combined.

Texas and North Dakota production

The IEA has reported US production of 8.4 million bpd of oil in April 2014, the highest monthly production volume in 27 years. Texas and North Dakota accounted for nearly half of this total.

Texas oil production reached more than 3.0 million bpd for the first time since the late 1970s, more than doubling production in the past three years. North Dakota production reached 1.0 million bpd for the first time in the state’s history, nearly tripling production over the last three years.

Combined crude oil production volumes from Texas and North Dakota were 4.0 million bpd in April. From April 2010 to April 2014, crude oil production volumes in the two states grew at average annual rates of 37% and 28% respectively, according to the IEA. In comparison, the rest of the US experienced a 2% average annual growth rate.

During this period, North Dakota and Texas combined share of total US crude production increased from 26% to 48%. In contrast, the Gulf of Mexico’s share declined from 27% to 17% due to Obama Administration policies increasing red tape for oil production on federal lands and waters.

According to the IEA, gains in Texas crude oil production came primarily from unconventional tight oil and shale reservoirs in the Eagle Ford Shale in the Western Gulf Basin in West Texas. North Dakota’s increased production came primarily from the Bakken shale formation in the Williston Basin.

Since April 2011, the Eagle Ford has seen the largest average monthly production increase, exceeding 32 000 bpd, more than twice the 14 000 bpd increase in the Permian. Production from the Bakken increased 19 000 bpd on average each month over the same period.

To read more about the global effects of the US rise in production, see also 'US oil production and its global effects'.

Adapted from a report by Emma McAleavey.

Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/11072014/us_crude_production_902/