Energize Weekly, August 28, 2019
The U.S. had one the largest absolute increases in oil and natural gas production for a single country in history in 2018, according to the federal Energy Information Administration (EIA).
In 2011, the U.S. had already surpassed Russia as the world’s largest producer of natural gas, and in 2018, it overtook Saudi Arabia as the world’s largest producer of petroleum.
Petroleum production, which includes crude oil, condensates and natural gas plant liquids (NGPLs) was up 16 percent in the U.S. in 2018 to 28.7 quadrillion British thermal units (quads), with 80 percent in crude oil and condensate and 20 percent in NGPLs.
U.S. dry natural gas production increased 12 percent in 2018 to 28.5 billion cubic feet per day (Bcf/d), or 31.5 quads – hitting a new record for the second year in a row. Growth in liquefied natural gas (LNG) capacity and the growing ability to reach new markets aided to the increase in U.S. production.
Crude oil production in the U.S. was up 17 percent in 2018 to a record 11 million barrels a day, equal to 22.8 quads. Drilling in the Permian Basin in West Texas and New Mexico contributed most to the increased domestic production. NGPL production has also more than doubled since 2008, reaching 4.3 million barrels a day in 2018 or 5.8 quads.
Russian crude oil and natural gas production also hit record levels in 2018, spurred by growing global demand, with most of the country’s exports going to Europe and China. Sixty percent of Russia’s crude oil goes to European countries.
Saudi Arabia’s annual average crude oil production was up slightly in 2018, but it remained lower than in 2016, when Saudi Arabia’s crude oil output reached a record high.
Saudi Arabia’s crude oil production reached an all-time monthly high in November 2018 before the December 2018 agreement by the Organization of the Petroleum Exporting Countries (OPEC) to extend production cuts, the EIA s
Crude oil accounts for about 60 percent of Saudi Arabia’s total economic output with China, Japan, South Korea and the U.S. key markets for Saudi petroleum exports.
