AmeraTex Energy: US Oil and Gas Boom Takes Many by Surprise

AmeraTex Energy: US Oil and Gas Boom Takes Many by SurpriseBrought to you by AmeraTex Energy - an Oil & Natural Gas Exploration company.The rapid growth in U.S. oil production has surprised even industry insiders.Forecasts that once sounded far-fetched are becoming reality. The oil production boom had beenexpected, but the magnitude of change in such a short period of time is a surprise. U.S. oil production isat its highest level in 20 years, while at the same time U.S. oil demand is at a 17-year low.The International Energy Agency projects the U.S. could even leap frog Saudi Arabia and Russia tobecome the worlds biggest oil producer by 2020."The view I have is the U.S. will be a lot less dependent with Canada. That will really reduce imports,combined with more fuel-efficient cars, from outside North America. Well still be importing some, butits certainly a rebalancing of global oil. That oil that was coming to the United States will go somewhereelse and that somewhere else would be Asia," said Daniel Yergin, vice chairman of IHS. "The other placewhere oil demand is really growing happens to be the Middle East."

U.S. oil is already beginning to displace some imports."The next shoe to drop, I think, is when the new supply chains start to move substantial amounts ofBakken and Canadian oils to the East Coast, particularly the Bakken that goes head to head with WestAfrican crude," he said.Yergin hosts the annual IHS CERAWeek energy conference, now in its 32nd year, March 4-8. Thespeakers list represents the world oil industrys whos who, as well as some of its biggest customers,such as FedEx CEO Frederick Smith. Key note speakers include CNOOC CEO Farong Li; BP CEO BobDudley; Saudi Aramco CEO Khalid Al-Falih, and Eni CEO Paolo Scaroni."One big takeaway is the scale of this unfolding oil and gas revolution in the United States. The fact[that] our oil production is up 40 percent since 2008, and the economic impact it has had on jobs,manufacturing and competitiveness. I think thats a theme thats going to run through it," Yergin said.The U.S. is expected to produce 7.3 million barrels per day this year, up from 6.4 million in 2012,according to the Energy Information Administration. As would be expected, the amount of oil the U.S. isimporting is declining. Imports totaled about 7.7 million barrels per day in the month of February, down1.2 million barrels per day from he same time last year.U.S. oil demand for 2012 was 18.56 million barrels per day, down 2 percent from the year earlier and itslowest annual level since 1996, according to the EIA. Oil demand fell every month last year, except forMay.Hydraulic fracturing, or "fracking," has helped lead to this revolution in gas and oil production. The U.S.EIA projects there is 2,200 trillion cubic feet of gas resources in the U.S., enough for 100 years. In drillingfor that gas, the industry uncovered a trove of natural gas liquids.Horizontal drilling is not new, but the wide application of it is, and hydraulic fracturing, which uses waterand sand to drill through rock formations, has been combined with it to make billions of more barrels ofoil recoverable. Hydraulic fracturing, or "fracking," is also the technology behind the shale gas boom."When horizontal drilling got married to hydraulic fracturing, the key year was 2003," said Yergin. "Thatwas when it was proof of concept. So for five years, it unfolded quietly with the independents. In 2008,thats when the majors got interested."Yergin said the conference will also focus on the logistical issues affecting the industry."Our logistical system needs to catch up with these new supplies," he said. "Five years ago no one wouldhave thought that North Dakota would be supplying oil to a refinery in Philadelphia."One pipeline sure to be a topic of discussion at CERAWeek is the Keystone XL pipeline that wouldconnect the Canadian oil sands to refineries in the Gulf of Mexico, 2000 miles away. The pipeline needsPresident Barack Obamas approval since it crosses the Canadian border.

The State Department Friday issued a revised environmental impact statement, which basically providedno conclusive environmental reason why the pipeline should not be built.The industry saw the statement as one less hurdle facing the controversial pipeline, which is opposed byenvironmentalists.Other topics of discussion at the conference include alternative energies, climate change, and how theindustry, especially utilities, are equipped to deal with natural disasters such as super storm Sandy.Brought to you by AmeraTex Energy - an Oil & Natural Gas Exploration company.AmeraTex Energy18601 Lyndon B Johnson Fwy #401Mesquite, TX 75150

AmeraTex Energy: US Oil and Gas Boom Takes Many by Surprise

by Ameratex Energy on Mar 06, 2013

Accessibility

Upload Details

Usage Rights

1 Embed 17

Statistics

AmeraTex Energy: US Oil and Gas Boom Takes Many by Surprise Document Transcript