In the previous article, Asia's Insatiable Oil Demand, I covered global and regional oil consumption numbers according to the recently-released 2018 BP Statistical Review of World Energy.
Over the previous three years, and despite strong demand growth, the world had only increased oil production by 1.2 million BPD, and it essentially all came from OPEC. Many analysts, including me, were extremely concerned about the future hold OPEC would maintain over the world's oil supplies.
Unbeknownst to most people, oil producers were experimenting with a marriage between two established oil drilling technologies - horizontal drilling and hydraulic fracturing.
The success of this marriage would unlock oil in tight oil and shale oil deposits that had previously been too expensive to recover, and would result in one of the greatest oil booms the world had ever seen.
While it is still true that OPEC still produced 42.6% of the world's oil in 2017, the majority of new oil production since 2008 has come from the U.S. Of the 10.3 million BPD of new oil production since 2008, the U.S. supplied 6.2 million BPD. The world's two other major oil-producing countries, Saudi Arabia and Russia, saw their production increase by 1.7 million BPD and 1.2 million BPD respectively since 2008.
It is hard to overstate the consequences of the fracking revolution, because the U.S. oil production surge broke OPEC's stranglehold on global oil prices.
Every country in the world would likely have paid much higher oil prices over the past decade if the new oil boom in the U.S. hadn't happened, further enriching OPEC and Russia in the process.
https://www.forbes.com/sites/rrapier/2018/07/22/how-the-fracking-revolution-broke-opecs-hold-on-oil-prices/#3ead423048ef
Over the previous three years, and despite strong demand growth, the world had only increased oil production by 1.2 million BPD, and it essentially all came from OPEC. Many analysts, including me, were extremely concerned about the future hold OPEC would maintain over the world's oil supplies.
Unbeknownst to most people, oil producers were experimenting with a marriage between two established oil drilling technologies - horizontal drilling and hydraulic fracturing.
The success of this marriage would unlock oil in tight oil and shale oil deposits that had previously been too expensive to recover, and would result in one of the greatest oil booms the world had ever seen.
While it is still true that OPEC still produced 42.6% of the world's oil in 2017, the majority of new oil production since 2008 has come from the U.S. Of the 10.3 million BPD of new oil production since 2008, the U.S. supplied 6.2 million BPD. The world's two other major oil-producing countries, Saudi Arabia and Russia, saw their production increase by 1.7 million BPD and 1.2 million BPD respectively since 2008.
It is hard to overstate the consequences of the fracking revolution, because the U.S. oil production surge broke OPEC's stranglehold on global oil prices.
Every country in the world would likely have paid much higher oil prices over the past decade if the new oil boom in the U.S. hadn't happened, further enriching OPEC and Russia in the process.
https://www.forbes.com/sites/rrapier/2018/07/22/how-the-fracking-revolution-broke-opecs-hold-on-oil-prices/#3ead423048ef
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