Friday, May 1, 2015
The U.S. remained the world’s top producer of petroleum and natural gas hydrocarbons in 2014, according to Energy Information Administration (EIA) estimates. Hydrocarbon production continues to exceed that of both Russia and Saudi Arabia, the second- and third-largest producers, respectively. For the U.S. and Russia, total petroleum and natural gas hydrocarbon production, in energy content terms, is nearly evenly split between petroleum and natural gas. Saudi Arabia’s production heavily favors petroleum.
Since 2008, U.S. petroleum production has increased by more than 11 quadrillion Btu, with dramatic growth in Texas and North Dakota. Despite the 50% decline in crude oil prices that occurred in the second half of last year, U.S. petroleum production still increased by 3 quadrillion Btu—1.6 MMbbld—in 2014. Natural gas production, largely from the eastern U.S., increased by 5 quadrillion Btu—13.9 Bcfd—over the past five years. Combined hydrocarbon output in Russia increased by 3 quadrillion Btu, and in Saudi Arabia by 4 quadrillion Btu over the past five years, EIA reports.
While U.S. hydrocarbon production over the past several years is directly attributed to the success of exploiting tight oil formations and shale gas, other key factors also acted to keep production from increasing in Russia and Saudi Arabia in 2014. Although Russian petroleum production continued to increase, natural gas production declined because weak European economic growth and a warm 2013-2014 winter reduced demand in Russia’s primary market for gas exports. While total petroleum and natural gas hydrocarbon production estimates for the U.S. and Russia in 2011 were roughly equivalent, by 2014 U.S. production exceeded Russian production by nearly 12 quadrillion Btu.
In contrast to its past actions to raise or lower oil production levels to balance global oil markets, Saudi Arabia did not cut its production in the fall of 2014 despite falling oil prices and growing global inventories as supply exceeded demand. As a result, Saudi Arabia’s total petroleum and natural gas hydrocarbon production was almost unchanged from 2013. With the increase in U.S. production, the nation produced nearly twice the petroleum and natural gas hydrocarbons as produced by Saudi Arabia in 2014.
Since 2008, U.S. petroleum production has increased by more than 11 quadrillion Btu, with dramatic growth in Texas and North Dakota. Despite the 50% decline in crude oil prices that occurred in the second half of last year, U.S. petroleum production still increased by 3 quadrillion Btu—1.6 MMbbld—in 2014. Natural gas production, largely from the eastern U.S., increased by 5 quadrillion Btu—13.9 Bcfd—over the past five years. Combined hydrocarbon output in Russia increased by 3 quadrillion Btu, and in Saudi Arabia by 4 quadrillion Btu over the past five years, EIA reports.
While U.S. hydrocarbon production over the past several years is directly attributed to the success of exploiting tight oil formations and shale gas, other key factors also acted to keep production from increasing in Russia and Saudi Arabia in 2014. Although Russian petroleum production continued to increase, natural gas production declined because weak European economic growth and a warm 2013-2014 winter reduced demand in Russia’s primary market for gas exports. While total petroleum and natural gas hydrocarbon production estimates for the U.S. and Russia in 2011 were roughly equivalent, by 2014 U.S. production exceeded Russian production by nearly 12 quadrillion Btu.
In contrast to its past actions to raise or lower oil production levels to balance global oil markets, Saudi Arabia did not cut its production in the fall of 2014 despite falling oil prices and growing global inventories as supply exceeded demand. As a result, Saudi Arabia’s total petroleum and natural gas hydrocarbon production was almost unchanged from 2013. With the increase in U.S. production, the nation produced nearly twice the petroleum and natural gas hydrocarbons as produced by Saudi Arabia in 2014.
