U.S. Record Crude-Oil Production Could Happen by 2016
Tuesday, December 17, 2013
The United States is on track to reach record production of crude-oil, due in part to hydraulic fracturing, according to the Wall Street Journal.
The increased production could bring lower prices to the gas pump.
Read it:
“The rising U.S. production “will weigh heavily on oil prices,” said Ed Morse, head of commodity research at Citigroup. He said he believes that in the second half of the decade the global benchmark price will be $15 a barrel below where it is now.
“It could be a lot lower if the shale revolution continues around the world” as expected, Mr. Morse said.”
History
The recent uptick in production has prompted oil producers to push for lifting restrictions on oil exports. The U.S. hasn’t exported oil since 1973. Since then the U.S. has taken production from a 62-year low to an almost all-time high.
Allowing oil exports could benefit large production companies like Exxon. Selling oil on a global market may allow the company to sell the oil at a higher price.
Natural gas
Other numbers suggest the U.S. could be a net exporter of natural gas by 2018.
» Via: The Wall Street Journal » U.S. May Reach Records for Crude-Oil Production by 2016
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Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.