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U.S. Pumps Most Oil Since 1997 as Energy Independence Grows

Bloomberg -- U.S. oil production surged last week to the highest level since January 1997, reducing the country’s dependence on imported fuels as new technology unlocks crude trapped in shale formations.

Crude output rose by 3.7 percent to 6.509 million barrels a day in the week ended Sept. 21, the Energy Department reported today. America met 83 percent of its energy needs in the first 6 months of the year. If the trend continues through 2012, it will be the highest level of self-sufficiency since 1991. Imports declined 3.2 percent from the same period a year earlier.

A combination of horizontal drilling and hydraulic fracturin helped reduce America’s reliance on foreign oil. The same technology unleashed a boom in natural gas output from shale that pushed inventories to a record last year.


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Submitted Sep 27, 2012 By: MidNJ
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Author Topic: U.S. Pumps Most Oil Since 1997 as Energy Independence Grows Back to Topics
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honda0105
Champion Author Tallahassee

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Message Posted: Oct 2, 2012 5:02:26 AM

INdependence is never going to happen in this century. LESS-dependence yes.
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DanMtz
Champion Author Oakland

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Message Posted: Sep 28, 2012 1:43:44 PM

Something tells me energy independence is a long ways off.
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PDQBlues
Champion Author San Diego

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Message Posted: Sep 27, 2012 10:20:02 PM

US oil production is up, US gas usage is down, yet the price of gas is still too high.
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Van_Halen
Champion Author Atlanta

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Message Posted: Sep 27, 2012 2:05:31 PM

.
According to the Prophet Obama, this just can't be true because we have less then 2 percent of the world's oil! What a loser Obama is.
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sparky808
Champion Author Honolulu

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Message Posted: Sep 27, 2012 12:24:12 PM

Thank you for posting.
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mrjames1818
Champion Author New Jersey

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Message Posted: Sep 27, 2012 11:13:04 AM

So then why are gas prices still so high????
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jiml1965
Champion Author Harrisburg

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Message Posted: Sep 27, 2012 10:15:27 AM

good news
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puinsai808
Champion Author Honolulu

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Message Posted: Sep 27, 2012 10:06:33 AM

ok
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orphancarguyPE
Champion Author PEI

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Message Posted: Sep 27, 2012 9:51:09 AM

Gosh, statistics! The Bloomberg article has the SAME MISLEADING statement I have pointed out before--a case of starting out with apples, switching to oranges and hoping you won't notice what they did and question it, and then a switch back to apples. And its done TWICE in one paragraph!

Crude output did rise 3.7% to 6.509 million barrels a day for the WEEK ending Sept 21st, 2012. Imports declined 3.2% from the same period a YEAR earlier. Make it year/year or week/week and it can make some sort of sense, but not this mish-mash of 'feel-good' stats. Also, this is about oil, not all energy. The US has a serious shortfall of OIL, not nuclear, not natural gas, not coal, not electricity (from all those sources, plus renewables like solar PV, wind, and hydro) It wouldn't matter so much except its expensive and difficult to switch from crude oil over to other things, when you are so dependent on refined crude oil for aviation fuel, gasoline and diesel. While it is technically true that the US now covers 83% of its energy needs, that is including all types of energy. The exact figures on OIL are quite quite different!

Taken from EIA for the month ending August 2012. OIL
5.634 million bpd 48 states + 0.403 Mbpd Alaska = 6.037 Million bpd US prod.
included with the oil production is 2.072 M bpd of 'NPGL' (natural gas plant liquids) for a total of 8.109 Mbpd. There is a further 11% from renewables such as bio-diesel, butanol (ie, bio-gasoline replacement), ethanol, methanol etc. There is also what is called 'processing gain' which is when you refine crude oil, you end up with more individual separate product than the amount of crude you started with, as some is co-mingled until refined. That is 1.116 M bpd, so the total 'oil' production is 10.130 M bpd.

Now imports. Gross imports are even higher, at 10.781 M bpd, but not ALL of that oil was ever imported to be used IN the USA. The USA has spare refinery capacity, and does 'custom refinery work' for other countries, mostly in the Caribbean and other places in the Western Hemisphere. So, Americans get the jobs refining it for say, the Bahamas. Imported in, refined, re-exported--it never was part of the total US imports picture, not really. And no, when you look at the bigger picture, the US is not net exporting its OWN oil. The US was last able to export its 'own oil' around December 1970.

The US exports 2.854 M bpd of 'oil', likely in finished form as gasoline, diesel, etc. So, out of all the imports, it 'uses' 7.916 M bpd. Add in the bookkeeping adjustments of -0.403 M bpd in stock (in other words, stock on hand average per day in August) and a correction to previous estimates of +0.703 M bpd, so the 'real' figure of inventory increased an average of 1.106 M bpd over 31 days during August, or a bit more less than half a day's extra supply on hand at the end of the month. The grand total of petroleum products supplied was 19,152,000 barrels per day or 593,712,000 barrels 'used' in August 2012.

What does this mean? Well, it was only a moment in time (one single month) and it means little in itself. All I can say is that the US domestically produced 10.781 Million barrels per day of 'oil' (including some *asterisk* equivalents to oil) and net imported 7.916 Million barrels per day. When you compare actual crude oil production (less renewables and refinery gain for the moment) its just slightly larger than net imports of crude oil. Add them back in and the US imports 7.916/(19.152-1.106 for adjustments) = 43.99% of the oil needed to run the country--at least during the month of August 2012.

At the peak of the boom around 2007 just before the banks and economies crashed in the (largely US caused) world-wide recession, the US was importing 60-61% of all the oil it needed. It has dropped to 44%. The change looks big, but it isn't all increased domestic oil production--far from it. Its a mix of increase, higher efficiency in all modes of transport (which is about 75% of all oil use), lingering economic slowness from the worst recession since the Great Depression, and consumers just not using as much ie carpooling, combining trips, foregoing road travel. When you consider that about a year after the crash, the figure was trending under 50% imports ie 2/3 of the drop in the import gap, you can figure out that actual increase in production was about 5-6% or a bit better than 1/3 of the decrease in imported oil. And THAT is over the last 5 years.

So remember--when you hear or see wildly misleading statements like the US went from importing 61% of its oil to supplying 83% of its own energy in only 5 years--know enough to question the figures and how they are compared

My own guesstimate is that--if the economy was fully back up to speed--the gap for OIL imports into the US would have dropped from 61% down to about 50-55% with US production supplying 45-50% tops.

It makes more sense to compare year by year or decade by decade. Also, there is LOTS of oil available from fracking, but the process of being completely free of imported oil from overseas (imports from Mexico and Canada are not considered 'overseas' in view of many analysts and commentators) is going to be much longer and slower than commonly thought. Even converting partially to natural gas from gasoline and diesel for vehicles will cost untold hundreds of billions and take a decade or two.
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IrishCowboy
Champion Author Fort Wayne

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Message Posted: Sep 27, 2012 9:16:59 AM

Great, now we are getting more independent. So why is it costing more? You can't tell me it costs more to pump it here than it does to pump it over there and tanker it over here
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daquanabe
Champion Author Houston

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Message Posted: Sep 27, 2012 9:12:06 AM

Independence grows along with our gas prices.
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kmurphy345
Veteran Author Toronto

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Message Posted: Sep 27, 2012 8:45:20 AM

ok
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Houckster
Champion Author Atlanta

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Message Posted: Sep 27, 2012 8:36:30 AM

REDSKINGAS writes: And of course Obama takes credit for this even though the increase is due to private investors on private land. But then they didn't build that company, the government did.
_____
First "redskin" is equivalent to "nigger" so I hope REDSKINGAS will reconsider his name.

Secondly, Mr. Obama does deserve some credit in that, contrary to Hard Right claims that he is inhibiting development of our resources, US oil production is up. Apparently, EPA regulations are not that restrictive after all. The Obama administration has been pretty pragmatic about energy development in this country. If you have a good plan and can develop the resource safely, you can get a permit.

As for energy production on federal land, a recent Washington Post article stated that deposits on federal land are pretty much optimally utilized and areas like ANWR will add very little to our supplies of oil.
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Houckster
Champion Author Atlanta

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Message Posted: Sep 27, 2012 8:29:03 AM

STUDEBAKER1940 writes: Get ready for $6. Hopefully before November so he sheeple won't re-elect Obama or any current legislatures
_____
Honestly, some people will do anything to blast Mr. Obama. And of course STUDEBAKER1940 is all-knowing and the rest of us are "sheeple". Maybe we should elect STUDEBAKER1940.

Or perhaps, more importantly, STUDEBAKER1940 should come back to reality.
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MikLamb
Champion Author Texas

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Message Posted: Sep 27, 2012 8:19:56 AM

Good news.
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studebaker1940
Champion Author Tampa

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Message Posted: Sep 27, 2012 8:14:33 AM

Get ready for $6. Hopefully before November so he sheeple won't re-elect Obama or any current legislatures

[Edited by: studebaker1940 at 9/27/2012 9:15:29 AM EST]
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RedRam2005
Champion Author San Antonio

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Message Posted: Sep 27, 2012 8:14:19 AM

Exports have gone up but prices have not come down...What is wrong with this picture? Almost everything!
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garjul
Champion Author Flint

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Message Posted: Sep 27, 2012 8:13:28 AM

Keep our oil here, then it will wean us off foreign oil dependency.
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RedskinGas
Champion Author Tennessee

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Message Posted: Sep 27, 2012 8:09:27 AM

And of course Obama takes credit for this even though the increase is due to private investors on private land. But then they didn't build that company, the government did.
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ss70
Champion Author Detroit

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Message Posted: Sep 27, 2012 8:08:59 AM

Good for refiners not for consumers at all.
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Tsunamiron
Champion Author Jacksonville

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Message Posted: Sep 27, 2012 8:08:35 AM

Don't expect gas prices to ever come down. In fact, some states may see $5 per gallon next summer.
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cableman31
Champion Author New York

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Message Posted: Sep 27, 2012 8:08:21 AM

The SOLE PURPOSE OF THE KEYSTONE PIPELLINE IS TO GET ALBERTA OIL TO AN EAST COAST DEEP WASTER SEA PORT FOR EXPORT. To suck in the useless politicians they will divert a VERY SMALL PERCENTAGE of oil to the TEXAS refineries.
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40mpgsaturn
Champion Author Wisconsin

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Message Posted: Sep 27, 2012 8:07:39 AM

Gas prices will still not go down!!
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BeatOPEC
Champion Author Indianapolis

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Message Posted: Sep 27, 2012 8:05:03 AM

Lets start keeping our oil here. Don't import from the Middle East.
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PhilMils
Champion Author Virginia

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Message Posted: Sep 27, 2012 8:04:21 AM

... and more gets exported. Reroute the planned Keystone XL pipeline to the refineries in the NE US. They must rely on the more expensive Brent crude because it is too expensive to truck in the oil produced in North America. The difference is about 45 cent per gallon.
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pulpwood
Champion Author Mississippi

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Message Posted: Sep 27, 2012 8:04:04 AM

America is the #1 Exporter of refined fuel in the world.
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suicyco16
All-Star Author Phoenix

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Message Posted: Sep 27, 2012 8:03:06 AM

good
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RichardoB
Champion Author Fayetteville

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Message Posted: Sep 27, 2012 8:00:48 AM

"Bloobberg" I like that.
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zwsn01
All-Star Author Alabama

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Message Posted: Sep 27, 2012 8:00:36 AM

Even if you drill more, we still have a bottleneck at the refiner level.
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ddkk
All-Star Author Illinois

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Message Posted: Sep 27, 2012 7:59:45 AM


If the U.S. is addicted to oil, . . .

then just how does it go 'Cold turkey' ?
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cssco
Champion Author Virginia

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Message Posted: Sep 27, 2012 7:59:21 AM

What is with the Bloobberg stuff at first word in this article? Fruedian slip?
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58salty
Champion Author Jacksonville

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Message Posted: Sep 27, 2012 7:59:16 AM

Pump prices are still too high
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nerde
Champion Author Florida

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Message Posted: Sep 27, 2012 7:59:10 AM

It's Obama's fault!
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bell05
Champion Author Atlanta

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Message Posted: Sep 27, 2012 7:58:40 AM

Just don't think we should be Fracking.
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SSchmidty
Champion Author Illinois

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Message Posted: Sep 27, 2012 7:58:37 AM

Sooooo, we're talking pig-oil and their lackeys hedge fund traders who's greater interest is for more $$ not cheaper, safer use og gas!
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gilfarm
Champion Author Alabama

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Message Posted: Sep 27, 2012 7:57:06 AM

And we still have high prices!
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bsmerl
Champion Author Florida

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Message Posted: Sep 27, 2012 7:56:40 AM

stop screaming down with Obama and drill baby drill....

We need to focus on mitt's friends...wall street and big oil!!
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investmentdr
Champion Author Cleveland

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Message Posted: Sep 27, 2012 7:56:25 AM

oil independence is a misnomer
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k2kipp
Champion Author Minnesota

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Message Posted: Sep 27, 2012 7:54:55 AM

Dont know who to believe anymore.
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SaturnSC
Champion Author Columbus

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Message Posted: Sep 27, 2012 7:54:55 AM

Wow
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RochBear
Champion Author Minnesota

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Message Posted: Sep 27, 2012 7:54:48 AM

We still need to get off our addiction to oil.

We will not be truely "energy independant" until we make more use of wind/solar, since the Sun is the source of more energy than we could ever dream of using.
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mreiff
Champion Author Louisville

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Message Posted: Sep 27, 2012 7:54:16 AM

So why are prices still so high then?
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cheli2010
Champion Author Twin Cities

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Message Posted: Sep 27, 2012 7:54:08 AM

so now we compete with the greed in our country in stead of others...
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FocusGuy
Champion Author Seattle

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Message Posted: Sep 27, 2012 7:52:52 AM

i really don't care anymore
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exd121
Champion Author Ottawa

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Message Posted: Sep 27, 2012 7:52:31 AM

and greed still raise gas prices
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bsmerl
Champion Author Florida

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Message Posted: Sep 27, 2012 7:52:19 AM

Republicans always find a way to blame Obama!!! He, the Democrat did it and prices are still high...i think all you Republicans need to find a NEW tree to bark up!!
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Gman2011MI
Champion Author Michigan

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Message Posted: Sep 27, 2012 7:51:30 AM

because we have all these gas guzzlers............
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RockCity
Champion Author Denver

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Message Posted: Sep 27, 2012 7:51:26 AM

Methinks it quite obvious if mittens gets elected/handed the job by the supreme court, then big oil will find their freedoms returned so they can go back to exporting more jobs and oil. You don't have to be a brain surgeon to figure this stuff out, perhaps.
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Rick01
Champion Author Utah

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Message Posted: Sep 27, 2012 7:51:14 AM

Good, now we need to tackle Wall Street and the pump prices.
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Palantas
All-Star Author Indianapolis

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Message Posted: Sep 27, 2012 7:49:49 AM

Yay for us.
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