Thursday, May 31, 2012

March U.S. Oil Production Highest Since 1998

Domestic Oil Production is Booming in North Dakota and Texas on Private Land: It's the Fuel of the Future
The Department of Energy released data today showing that U.S. field production of crude oil came close to reaching a 14-year high in March, with average daily production of 6.26 million barrels.  That was the highest average daily oil production in any month since June 1998, almost 14 years ago, when average output was slightly higher at 6.267 million barrels.

March oil production was 11% ahead of last year, as 630,000 more barrels were produced on average each day in March compared to last year.  Production increases of 215,000 more barrels per day in North Dakota in March of this year, and 388,000 more barrels per day in Texas were responsible for most of the overall national increase of 630,000 barrels per day.

It should be noted that these significant increases of crude oil production in North Dakota and Texas over the last year are taking place mostly on private and state lands, and have nothing to do with President Obama's "All-of-the-above" energy policy he introduced in his January State of the Union address.

Related: From my oral testimony today before the House Oversight Committee, full written testimony here.

"Even the government’s own forecasts predict that renewable energy will continue to play a relatively minor role as an energy source over the next several decades out to the year 2035. And traditional energy sources like oil, gas and coal will continue to provide the overwhelming share (more than three-quarters) of the fuel required to meet U.S. energy demand for the next three decades at least.

By favoring new, costly, subsidy-dependent alternative energy sources over traditional sources, and by not fully supporting the proven, job-creating, low-cost fossil fuels, it would be more accurate to describe President Obama’s costly energy strategy as “some of the most costly above” instead of “all-of-the-above.”

What we really want is an energy policy that is not based on “all-of-the-above” or “some of the above,” regardless of cost, reliability, and economic and scientific merits, but rather an energy policy that is grounded in the logic of “all of the energy sources that are actually cost-competitive.”

President Obama might wish for an energy future of alternative energy, but the scientific and economic realities suggest that the "fuels of the future" will mostly be the same as the "fuels of the past" — dependable, reliable and low-cost oil, natural gas, coal and nuclear."

11 Comments:

At 5/31/2012 1:53 PM, Blogger Rufus II said...

Not a chance. The EIA is 600,000 bbl/day high on Texas.

 
At 5/31/2012 2:01 PM, Blogger Buddy R Pacifico said...

See Professor Perry's House Oversight Committee testimony here.

 
At 5/31/2012 4:03 PM, Blogger Jon Murphy said...

How does one get invited to testify before Congress?

 
At 5/31/2012 4:33 PM, Blogger Ron H. said...

Jon M: "How does one get invited to testify before Congress?"

You can become the CEO of a major oil company, then you will be invited regularly, when those clowns need someone to abuse about oil prices.

 
At 5/31/2012 4:51 PM, Blogger rjs said...

"How does one get invited to testify before Congress?"

one can also get uninvited if one tells uncomfortable truths: http://neweconomicperspectives.org/2012/05/we-must-not-speak-uncomfortable-truths-to-power-why-i-wont-be-briefing-congress-about-derivatives.html

that said, i imagine those two downspikes in the chart were weather related, right?

 
At 5/31/2012 5:27 PM, Blogger Jon Murphy said...

You can become the CEO of a major oil company, then you will be invited regularly, when those clowns need someone to abuse about oil prices.

Eh, I was hoping to find a way that required absolutely no effort on my part.

 
At 5/31/2012 5:28 PM, Blogger Jon Murphy said...

i imagine those two downspikes in the chart were weather related, right?

Two black swan events, Hurricane Katrina and the recession.

 
At 6/01/2012 6:38 AM, Blogger VangelV said...

The economy is weak. WTI is ready to take another hit that will put the market price below what is necessary for shale producers to break-even. This increased production requires capital destruction in a time where little spare capital is available to throw away on hype and false dreams.

 
At 6/01/2012 6:50 AM, Blogger VangelV said...

What we really want is an energy policy that is not based on “all-of-the-above” or “some of the above,” regardless of cost, reliability, and economic and scientific merits, but rather an energy policy that is grounded in the logic of “all of the energy sources that are actually cost-competitive.”

Let us note here that the shale industry has attacked coal by using green industry contributions and the EPA to stifle competition. Some of the data is showing a huge increase in electricity costs for American industry and consumers by the end of the next three years regardless of what happens to shale gas. It looks to me as if the US government has followed the EU down the same rabbit hole. And given the regulatory environment and the legal system structure I see no easy way out.

 
At 6/01/2012 3:35 PM, Blogger Tom said...

Excellent testimony. Obama's energy policy is insane.

 
At 6/01/2012 9:34 PM, Blogger Ron H. said...

"Eh, I was hoping to find a way that required absolutely no effort on my part."

I believe the person who has expended the least effort for multiple invites is this guy.

 

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