Data snapshot; The United States is increasing energy production to meet demand

 

Excluding the impact of interest and tax expenses on free cash flow — cash from operations after paying for capital expenditure — the cash per barrel of oil required for shale companies increased to $34 per barrel in the first quarter of 2022 from $23 per barrel in the first quarter of 2021, Saudi bank Al Rajhi Capital said in a report.

However, that remains lower than the $51 per barrel required in the first quarter of 2020, “providing enough cushion to boost the production levels amid higher oil prices.”

US shale production likely to increase further as high oil prices boost cash flows; The National, June 17th

 

Operators will rake in about US$180 billion of free cash flow this year at current crude prices

Analysts say listed shale producers are earning so much cash — and equity valuations remain so discounted after years of investor flight — that share buybacks could eventually take some of them private.

It amounts to a “pretty phenomenal outcome”, said Matt Portillo, head of research at investment bank Tudor, Pickering, Holt & Co.

“If investors don’t return to the space, companies will slowly but surely privatize the entire capital stock.”

U.S. shale companies enjoy ‘tsunami of cash’ on high oil prices, FT, May 17th

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According to the U.S. Energy Information Administration (EIA);

In 2021, the United States imported about 8.47 million barrels per day (b/d) of petroleum from 73 countries. Petroleum includes crude oil, hydrocarbon gas liquids (HGLs), refined petroleum products such as gasoline and diesel fuel, and biofuels. Crude oil imports of about 6.11 million b/d accounted for about 72% of U.S. total gross petroleum imports in 2021, and non-crude oil petroleum accounted for about 28% of U.S. total gross petroleum imports.

In 2021, the United States exported about 8.63 million b/d of petroleum to 176 countries and 4 U.S. territories. Crude oil exports of about 2.98 million b/d accounted for 35% of total U.S. gross petroleum exports in 2021. The resulting total net petroleum imports (imports minus exports) were about -0.16 million b/d in 2021, which means that the United States was a net petroleum exporter of 0.16 million b/d in 2021.

The United States has been increasing its oil production over the past 12 months, and has continued to move further away from the second place producer, Russia

Top 10 Countries with the Highest Oil Production (barrels per day)

  1. United States – 11,567,000
  2. Russia – 10,503,000
  3. Saudi Arabia – 10,225,000
  4. Canada – 4,656,000
  5. Iraq – 4,260,000
  6. China – 3,969,000
  7. United Arab Emirates – 2,954,000
  8. Brazil – 2,852,000
  9. Kuwait – 2,610,000
  10. Iran – 2,546,000

Top 10 Countries that Produce the Most Natural Gas (Cubic Meters, 2020):

  1. United States — 914.6 billion
  2. Russia — 638.5 billion
  3. Iran — 250.8 billion
  4. China — 194 billion
  5. Qatar — 171.3 billion
  6. Canada — 165.2 billion
  7. Australia — 142.5 billion
  8. Saudi Arabia — 112.1 billion
  9. Norway — 111.5 billion
  10. Algeria — 81.5 billion

Russia may have more proven reserves than the United States, but Russia’s inefficiencies show. The phony fall of the Soviet Union allowed for Russia to receive a great transfer of Western technology devoted to building up Russia’s oil and gas production sector. While the United States ostensibly has lower proven reserves, the E&P sector continues to locate more reserves on a consistent basis. Moreover, many oil and gas wells replenish themselves spontaneously over time, which essentially refutes the misguided notion that hydrocarbon energy is a “fossil” fuel; rather it supports the concept that gas and oil are produced abiotically.

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4 thoughts on “Data snapshot; The United States is increasing energy production to meet demand

  1. The oil industry doesn’t give a duck about the creation . Look at the Niger … See what Russia does. Killing whales with their exploration methods. Etc etc etc. As an industry they are shameful. If they were responsible we woudnt be in this mess. Leftists could have been made to chill and anyway they all go along with with what the globalists want including the carbon lie. Oils are pathetic. They never had a plan to tell lefties the truth about co2 … That all our little increase does is makes vegetation more luxurient. I’m sure they’re all vsxxed and I hope they drop dead ASAP so people who don’t shit all over the place and man up to the satanists can take over. Mining in general is demonic and it doesnt need to be that way

  2. Oil is extremely abundant. It’s not running out anytime soon – thank God. The one’s in charge renamed it to fossil fuels to deceive the public that it’s something that can potentially run out; hence the ability to charge a higher price.

    Admiral Richard E. Byrd stated in the 1950’s that Antartica has enough oil to sustain the entire world for a long time. This was very shortly before United Nations was formed, and banned civilians from entering Antartica. One of the longest successful treaties; especially considering all the countries involved.

  3. Long ago I read an article citing peak oil was a myth. The document detailed Russia’s deep oil well drilling technology put to use in (I think) Southeast Asia where it was determined that the land was barren of all oil reserves. A deal was made and oil was found and continues to flow to this day I believe. It was also explained how once barren oil wells replenish from deeper wells. The oil in the deeper wells leaks into the shallower wells slowly through crevices in the earth but the process can take years or decades.

    Tying this together with another interesting theory about the expanding earth; I believe oil is not dead dinosaurs but rather a product of the activity in the core. A fusion product if you will and perhaps the same way water is made. Doesn’t the Bible describe (in Genesis I believe) how water came up from the earth to form our oceans? Science is merely a way to understand what God already knows.

    1. I’m sure there is plenty of oil. I would also bet the earth produces oil faster than humans consume it. The oil industry is the group responsible for pushing the myth of a “fossil fuel” that is scarce.

      The left wing environmentalist movement is actually really good for the oil industry. The supply is artificially restricted by “green energy” laws. Moreover, the government increases regulation, which creates barriers to entry. Oil is a commodity that should become less and less profitable to produce over time, since new entities will always come in to extract profits. The exact opposite is happening due to government “intervention” that ensures only established corporations can drill for oil.

      I get the impression that oil/energy have peaked for a while, barring further escalation of the Ukraine war. As is typical, the time to buy oil/energy stocks was in 2020 when the media was saying the industry was dead due to Covid and the election of “anti-oil” Joe Biden. The exact opposite happened. Now that energy is the conspicuous exception in a bear market, retail is finally buying in, which suggests a turnaround may be in order.

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