In addition to the economic growth and the historic low rate of unemployment, the United States is experiencing one of its best moments in an area where its power seems to be increasing continuously.
According to the latest federal data, the American oil production pulled more than 10 million barrels per day out of the ground last November, which represents a historic milestone. Naturally, we’re talking about an incredible 47-year record that liberals are having a really hard time discrediting, considering the president’s role in this achievement.
As reported by the U.S. Energy Information Administration yesterday, crude production hit exactly 10.038 million barrels per day, which nearly beats the all-time record of 10.044 million barrels per day that the United States achieved in November 1970.
Analysts agree that this situation represents great news for President Donald Trump’s agenda, not only because of the implications of such an achievement but also because of the fact that his agenda promotes the U.S. “energy dominance.”
Also, most experts point out that one of the main reasons why the U.S. oil production achieved this historic milestone was because of President Trump’s regulatory rollbacks in his first year in office.
Naturally, the president pointed out this particular detail in his State of the Union address, where he celebrated his administration’s achievements and detailed the new steps he was going to take on certain matters.
According to President Trump, his administration successfully ended what he described as the “war” on clean coal and American energy. Also, he said that the United States is now an exporter of energy to the world.
While it is an undeniable fact that his administration has offered more parcels for drilling and has successfully rolled back certain regulations on energy production, analysts believe there are some other reasons that also played a major role in the historic milestone achievement.
Apparently, most of the oil production gains actually came from hydraulic fracturing operations on state and private lands.
Yergin pointed out that that U.S. oil production was half of what is now just ten years ago, during the financial crisis in 2008. He said that’s an undeniable fact no one should ever question.
However, he explained that the high oil prices of that particular year were also some major catalysts that propelled the U.S. shale industry. According to his words, this one has used evolving new technologies in order to extract oil from places that were previously impossible.
Naturally, he pointed out this particular element has been extremely crucial to the American oil industry, to the point where the United States is now at the same level of the major players in this business.
As a matter of fact, several statistics revealed the United States is poised to overtake Saudi Arabia as the second-largest oil producer in the world. Naturally, we’re talking about an incredible development that almost no one expected a couple of decades ago.
While many believe this could definitely set a turning point in the geopolitical stage, it is believed that the relationships between these two nations will remain as usual.
Believe it or not, several analysts project that oil production of the United States could top 11 million barrels per day in 2019. Currently, the Saudi production sits at 10.6 million barrels per day.
Regarding this situation, Yergin told CNBC that the United States could add upwards of 2 million barrels a day from where the industry is today by the end of next year. Of course, he said this would set a turning point in the business.
This great news comes just after the Organization of Petroleum Exporting Countries (OPEC) decided last year to extend an agreement with certain non-OPEC members to curb output as a response to a global supply that fed in part by shale.
That particular agreement was finally showing signs of effectiveness with prices emerging from a terrible three-year downturn.
Soon after falling near $26 a single barrel two years ago, the global benchmark oil price incredibly climbed above $70 a barrel a couple of weeks ago, and the American price is following suit. Nevertheless, it is believed that increasing output from the United States may threaten rising prices.
With this incredible news and the policies taken by the Trump administration, America’s economic future seems to be guaranteed, at least for a couple of years.