The U.S. crude production is estimated to reach 7.4 million bbl/d this year and 8.2 million bbl/d in 2014 according to EIA. However gasoline consumption alone is projected to be 8.68 million barrels per day. When other products of crude oil such as jet fuel are added the daily consumption far exceeds production making the country a net importer of oil.
However in the past few years, production of oil from Shale rock has increased dramatically. Today U.S. Shale oil production accounts for a significant portion of the total U.S. oil production and even impacts the global oil output.
From a recent report on Shale oil industry in AXA Investment Managers:
The scale and pace of the development are already big enough to modify parts of the US economy. It channelled US$133.7bn worth of investments between 2008 and 2012,1 and hundreds of thousands of jobs in North Dakota and Texas. The result is an unprecedented push in crude oil production, reaching almost 2mbpd (million barrel per day) according to the latest data (Exhibit 2). According to EIA’s central scenario, US shale gas should culminate around 3mbpd by 2020, bringing total US oil output to 8mbpd (10mbpd according to the most bullish estimates, e.g. by BP). Today, US shale oil already represents a very significant 2.2% of global oil output.
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Whether this surge will continue, fall off or even accelerate remains however an open question.
iPath S&P GSCI Crude Oil TR Index ETN (OIL)
Disclosure: No Positions
US becoming energy kingpin (The Hindu Business Line)