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Tuesday, January 27, 2015
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More U.S. oil-production mythology
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TOPIC: More U.S. oil-production mythology
More U.S. oil-production mythology 1 Year, 11 Months ago Karma: 273
Listening to the propaganda machine rev-up its hype about U.S. oil production; and we would believe that the world is about to be awash in 'oceans' of U.S. oil. Indeed, check out this hilarious Bloomberg headline:

Fracking Threatens OPEC as U.S. Output at 20-Year High

Now here are the facts. A DECADE ago (in his landmark presentation) Chris Martenson pointed out the TRUTH about (supposed) "U.S. oil reserves": it's all worse-than-useless. The problem is that to get at this DIRTY oil requires a tremendous expenditure of ENERGY.

Specifically, these Environmental Rapists harvesting this dirty oil USE about one barrel of oil to PRODUCE 1.1 barrels of oil -- a 10% surplus, and not nearly enough to justify all of the time, effort, and environmental destruction.

In comparison; when oil was plentiful, using one barrel of oil in oil production resulted in an average of 100 barrels of oil -- a 10,000% energy surplus.

Obviously with a mere 10% "energy surplus" these Oil Company Rapists could "frack" us until the whole world was an uninhabitable wasteland and STILL not produce enough SURPLUS oil to run the U.S. economy.

Fracking Threatens OPEC as U.S. Output at 20-Year High

A surge in U.S. oil production has pushed the country’s output to the highest level since 1992, threatening the dominance of the Organization of Petroleum Exporting Countries.

The U.S. pumped 7.06 million barrels a day in the week ended Feb. 8, up 1 percent from the previous week and extending last year’s 19 percent gain, the Energy Information Administration said today. OPEC production fell to the lowest level in a year in January, the Paris-based International Energy Agency said today in its monthly report.

Improvements in horizontal drilling and hydraulic fracturing, or fracking, have spurred drilling in states such as Texas, North Dakota and Oklahoma. Saudi Arabia, OPEC’s largest producer, reduced output in December because customers asked for less, Ibrahim al-Muhanna, an adviser to Saudi Arabian Oil Minister Ali al-Naimi, said Jan. 14.

“Increasing amounts of North American oil production puts pressure on OPEC to find other markets for their oil,” Andy Lipow, president of Lipow Oil Associates LLC in Houston, said by phone today. “It changes the political dynamics between the U.S. and OPEC.”

U.S. crude imports have fallen 5.9 percent so far this year, extending a 21 percent decline last year, according to data from the EIA, the statistical arm of the Energy Department. The U.S. met 84 percent of its energy needs in the first 10 months of last year, on pace to reach the highest annual rate of self-sufficiency since 1991.
OPEC Output

OPEC pumped 30.34 million barrels a day in January, down 100,000 barrels from December, the IEA said today. The agency said Saudi Arabia produced 9.25 million barrels a day, up from 9.15 million in December.

January OPEC production dropped to a 15-month low in a Bloomberg survey of oil companies, producers and analysts because of a 100,000 barrels a day drop in Saudi output.

“OPEC should find it challenging to survive another 60 years, let alone another decade,” analysts led by Ed Morse, global head of commodities research at Citigroup Inc. in New York, said in a report released today. “The United States should see its role in the world as a singular superpower enhanced and prolonged.”

Increased output from Canada and Mexico will accelerate the trend toward North American energy independence, according to the Citigroup report. By the middle of this year, the U.S. Gulf Coast will no longer import light, sweet crude, replacing it with domestic supplies. By the end of 2014, sour Canadian crude will displace shipments from Saudi Arabia, Iraq, Kuwait, Mexico and Venezuela.

Rising U.S. production has helped keep domestic oil prices pegged to the West Texas Intermediate futures contract cheaper than London-traded Brent, giving U.S. refiners an advantage and making the country the world’s largest exporter of refined petroleum products like gasoline and diesel.

The discount of WTI to Brent expanded to $23.18 a barrel on Feb. 8. It was at $21.08 a barrel at 12:05 p.m. in New York.

The U.S. benchmark for March delivery rose 4 cents to $97.55 a barrel on the New York Mercantile Exchange.

March Brent futures, which price more than half of the world’s oil, fell 3 cents to $118.63 a barrel on London’s ICE Futures Europe exchange. The contract expires today. The more- active April futures increased 2 cents to $117.77.

Record petroleum exports helped shrink the U.S. trade deficit in December to the smallest in almost three years. The gap narrowed 20.7 percent to $38.5 billion, the least since January 2010, the Commerce Department said Feb. 8 in Washington. The U.S. imported 223 million barrels of crude oil, the least since February 1997.
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