US Returns to Being a Net Oil Exporter

[thackney]

US Returns to Being a Net Oil Exporter
https://www.rigzone.com/news/us_returns_to_being_a_net_oil_exporter-30-dec-2019-160680-article/
December 30, 2019

Thanks to the shale oil revolution, for the first time since the 1940s, the United States exported more oil than it imported last September. In that month, U.S. exports of crude oil and refined products exceeded imports by 89,000 barrels a day, according to EIA statistics. This marks a significant turning point, for only a decade ago, American imports exceeded exports by a hefty 12 million barrels a day. Commenting on this change, Bob McNally, a former energy consultant to President George W. Bush and president of the consulting firm Rapidan Energy Group, said,  “the U.S. return to being a net exporter serves to remind how the oil industry can deliver surprises -- in this case, the shale oil revolution -- that upend global oil prices, production, and trade flows.”

The International Energy Agency (IEA) believes the U.S. is on track to become a sustained net oil exporter in either late 2020 or early 2021. It forecast an increase in U.S. exports of crude and refined products from 550,000 b/d in October 2019 to average 750,000 b/d in 2020. This uptick will have a positive impact on the U.S. trade balance.  In 2018, th U.S.petroleum trade deficit stood at $62 billion or 10 percent of the country’s trade balance according to Rystad Energy. Thanks to the ongoing growth in shale tight oil, the U.S. could enjoy a petroleum trade surplus in 2020.

The shale oil revolution also has geopolitical consequences, not least in that it will weaken the influence of America’s traditional Middle Eastern oil suppliers, such as Saudi Arabia, United Arab Emirates and Kuwait, on Washington’s foreign policy....

[catfish1957]

Don't you just love giving the collective middle finger to OPEC and the Middle East?  Us old enough to remember the embargos of the '70's take particular joy in this.

[Wingnut]

Don't you just love giving the collective middle finger to OPEC and the Middle East?  Us old enough to remember the embargos of the '70's take particular joy in this.

And to think it was predicted we would exhaust all our oil reserves by 2020.

I vividly remember another prediction..... President Obama called for the elimination of billions of dollars in oil industry tax breaks Friday, while stressing that the United States can’t drill its way out of high gas prices.

“We can’t just drill our way out of the problem,” Obama said during an energy policy speech in Indiana Friday. “If we’re serious about addressing our energy problems, we’re going to have to do more than drill.”


Obama’s remarks come as Washington policymakers are feeling pressure to take action to address high gas prices, which are nearing a nationwide average of $4 a gallon."

What a provincial putz.

[IsailedawayfromFR]

And to think it was predicted we would exhaust all our oil reserves by 2020.

I vividly remember another prediction..... President Obama called for the elimination of billions of dollars in oil industry tax breaks Friday, while stressing that the United States can’t drill its way out of high gas prices.

“We can’t just drill our way out of the problem,” Obama said during an energy policy speech in Indiana Friday. “If we’re serious about addressing our energy problems, we’re going to have to do more than drill.”


Obama’s remarks come as Washington policymakers are feeling pressure to take action to address high gas prices, which are nearing a nationwide average of $4 a gallon."

What a provincial putz.

You ain't seen nothing yet when you watch what happens to natural gas over the next decade.

It will make the oil production increases look paltry.

[libertybele]

A little over 15 years ago we took a trip out to Colorado; it was then that we learned about the massive, massive amount of shale oil that this country has. The U.S. has more shale oil than ALL the countries combined in the Middle East.  At that time, the theory was that it was too expensive to refine.  Well, well, finally, progress has been made.  The U.S. should become energy independent period.

[thackney]

A little over 15 years ago we took a trip out to Colorado; it was then that we learned about the massive, massive amount of shale oil that this country has. The U.S. has more shale oil than ALL the countries combined in the Middle East.  At that time, the theory was that it was too expensive to refine.  Well, well, finally, progress has been made.  The U.S. should become energy independent period.

You may be confusing oil shale with shale oil.  Not the same.  The massive Green River Oil Shale is not able to produce pump-able oil without retorting.

[Joe Wooten]

You may be confusing oil shale with shale oil.  Not the same.  The massive Green River Oil Shale is not able to produce pump-able oil without retorting.

There was a proposal at one time to build a twin unit nuke plant to supply the power and steam for the shale fields in Utah. It went nowhere since it was proposed during the anti nuke hysteria peak in the late 70's.

[IsailedawayfromFR]

There was a proposal at one time to build a twin unit nuke plant to supply the power and steam for the shale fields in Utah. It went nowhere since it was proposed during the anti nuke hysteria peak in the late 70's.

that could certainly change the economics for it and potentially millions  of bopd to come onstream.

Similar proposals have been made for Athabasca in Canada that would be largest producing field in North America.

[Smokin Joe]

In most places, the problem is the same: Government.

The Real game changer left on the planet, in terms of reserves is Venezuela, with proven reserves that beat the Saudis.
They could power South and Central America into the First World.
Canada is tied up by Liberals in Government and lawsuits from enviros and First Nations (likely egged on by enviros and a chance to cash in, as much or more than simply preserving the lands without any industrial disturbance).

Venezuela had the backing of Global Oil Companies until it nationalized its oil and basically kicked them out. Without the expertise and capital of mostly American assets, they went down hill fast. Without some major changes in government there, that is unlikely to come back.

The  Russians also have huge reserves, but i's Russia, and if the State doesn't demand it, it won't happen, and even if it does, much of the communist malaise from the USSR still lingers over the industry there.

[IsailedawayfromFR]

In most places, the problem is the same: Government.

The Real game changer left on the planet, in terms of reserves is Venezuela, with proven reserves that beat the Saudis.
They could power South and Central America into the First World.
Canada is tied up by Liberals in Government and lawsuits from enviros and First Nations (likely egged on by enviros and a chance to cash in, as much or more than simply preserving the lands without any industrial disturbance).

Venezuela had the backing of Global Oil Companies until it nationalized its oil and basically kicked them out. Without the expertise and capital of mostly American assets, they went down hill fast. Without some major changes in government there, that is unlikely to come back.

The  Russians also have huge reserves, but i's Russia, and if the State doesn't demand it, it won't happen, and even if it does, much of the communist malaise from the USSR still lingers over the industry there.

Russia is the one I had thought would implement the nuclear-power-to-get-heavy-crude strategy first as it has few internal forces to stop it from happening.  Perhaps it does not have a concentrated amount of it such as exists in Venezuela or Alberta which is required to expend the money to build a nuclear plant site.

[thackney]

Russia is the one I had thought would implement the nuclear-power-to-get-heavy-crude strategy first as it has few internal forces to stop it from happening.  Perhaps it does not have a concentrated amount of it such as exists in Venezuela or Alberta which is required to expend the money to build a nuclear plant site.

Volga-Ural basin?

https://www.rigzone.com/training/heavyoil/insight.asp?i_id=193

[thackney]

https://www.eia.gov/todayinenergy/detail.php?id=42340