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U.S. Oil Revolution Looms over OPEC

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When OPEC and non-OPEC oil producers met in Vienna recently, there was one major player missing, the United States. America has become one of the world’s largest producers, even recently becoming a net exporter of petroleum products. The IEA says American influence over world oil markets will only grow. CNBC’s Holly Ellyatt reports:

On the day OPEC ministers sat down to talk in Vienna last Thursday, the IEA noted that an important piece of data was published, noting that “according to the (U.S.) Energy Information Administration, in the week to 30 November the U.S. was a net exporter of crude and products for the first time since at least 1991.”

In 2018 to date, U.S. net imports have averaged 3.1 million barrels a day (mb/d). Ten years ago, just ahead of the shale revolution, the figure was 11.1 mb/d., the IEA said.

“As production grows inexorably, so will net imports decline and rising U.S. exports will provide competition in many markets, including to some of the countries meeting in Vienna last week.”

The IEA noted that while cooperation between Russia and Saudi Arabia is now “the basis of production management” with these two countries having a large capacity to swing output one way or the other, the U.S. is the third, “non-playing member” of what it called the Big Three.

“The United States … is now the world’s biggest crude oil producer …(it) is also the world’s biggest consumer and lower prices are welcome, although its producers will want to see them stay high enough to encourage further investment.”

Read more here.

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