#UK The American energy story in 10 charts


shale oil

In just a matter of years, the American “energy renaissance” has made the region a leader in global oil.

Joseph P. Quinlan, the chief market strategist at US Trust, attributes the US’s energy boom to three factors:

One, pro-market policies at the state and local level. Two, revolutionary technologies. And three, “good old American entrepreneurship/risk-taking.”

“By combining all three, the United States has upended the global energy markets,” he wrote in a recent note to clients. “However, and unfortunately, the boom has also turned a virtue (soaring oil/gas production and the attendant positive effects) into a vice (oversupply and ensuing negative knock-on effects).”

Oil prices have been depressed since crashing in the second half of 2014, and that’s had huge implications for the industry. With that in mind, US Trust put together the following 10 charts that show exactly where American energy is right now — and what it might mean for the future.

The number of active rigs drilling for oil keeps dropping, but production is still going strong.

Production peaked around July at 9.6 million bpd, and is currently around 9.2 million bpd. Much of this has gone into storage.

“The declining rig count, coupled with a sharp drop in oil-related infrastructure among major oil producers, portends slowing or declining US oil production over the medium term, and a bottoming out of oil prices over the next year,” writes Quinlan. “Supply cutbacks in the US and overseas, coupled with stronger global growth in 2016, could boost world oil prices back into the range of $50-65 per barrel over the next twelve months.”

Source: US Trust

A few “super” oil fields emerged in the shale basins in the last few years.

“Super” oil fields, or those that produce over 1 million barrels a day, are pretty rare around the world. But over the last two years, two “new” ones emerged in the US: the Eagle Ford in South Texas and the Bakken in North Dakota and Montana.

Although the production of both super oil fields has declined in the past few years, they still “lie at the core of America’s energy revolution,” writes Quinlan.

Source: US Trust

US oil production skyrocketed in the years after the financial crisis.

By 2014, daily oil production topped 9 million barrels a day.

Moreover, production increased by 2.2 million bpd in the past two years — which, to put it in perspective, is greater than the entire production of Brazil.

Source: US Trust

See the rest of the story at Business Insider

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