Washington: Fuel production in the United States is expected to show an increase of a whopping 10% in this year, reaching 11 million barrels per day. The latest report of Rystad Energy has forecasted that this increased production shall take the US to the top, surpassing nations like Saudi Arabia and Russia, which are currently leading the fuel sector. Rystad Energy is known to be a leading Oil and Gas Advisory and Research company in Europe.
The Shell fuel production in the US has transformed the face of the fuel markets, a senior officer Nadia Wiggen from Rystad Energy, thus indicated US’s domination in this sector to be seen in the near future. EIA, a leading US firm in the energy sector stated in its report released last month, that the US shall reach a production of 11 million barrels of crude oil per day by the end of December. Similarly, it was also stated that the crude oil production in the US is increasing at the rate of 25 thousand barrels per day.
Raising attention to this information, Rystad Energy has mentioned in its report the huge investments and Government subsidies to “Shale Oil” in the US. US President Donald Trump has announced huge subsidies to the energy sector and has also taken decisions that would encourage fuel exports. The report further states that this has resulted in increased investment as well as productivity from companies involved this sector.
Post 1975 the US was lagging in fuel production and hadn’t been able to surpass Russia and Saudi Arabia. However, in the past few years, as a result of the “Shale” technology, the US has soared high in the fuel sector and has also started exporting fuel internationally. Currently the fuel rate in the US is 61 dollars per barrel which has proven to be the highest in the last two and a half years. The comparative rate of The US fuel in the international market is less by only 6 dollars per barrel.
The US had lifted the ban on fuel exports in 2015. In the 2 years since, the fuel exports have tripled in volume. At the same time, the fuel import of the US over last 9 years has decreased by 25 percent. Increased fuel production has stabilized and secured the fuel market in the US and the Rystad Energy report indicates that this stability will continue during President Trump’s tenure.
The “Shale” technology of the US had resulted in increasing supply more than the demand in the fuel markets in the past few years, thus causing a crash in prices of crude oil. Last year, leading nations like Russia and Saudi Arabia had decided to cut down production, as a measure to arrest the crash in fuel prices. Just as positive results of this measure were becoming evident, US’s rise to the top in fuel markets is considered to be of great significance.