U.S. to be World’s Largest Oil & Natural Gas Producer by Year’s End

This week, the U.S. Energy Information Administration (EIA) delivered an uplifting piece of news for our nation’s economy, our environment and for our America’s energy security. In a newly issued report, EIA estimates that the U.S. will surpass both Russia and Saudi Arabia to become the “world’s top producer of petroleum and natural gas hydrocarbons in 2013.” By all accounts, the times are changing for American energy and our nation’s future.

Here’s what they’re saying about this positive and “dramatic change”:

NATURAL GAS POSITIVELY “RESHAPING U.S. ENERGY INDUSTRY”

  • “Northeast’s Gas Boom Is Reshaping U.S. Energy Industry”: More than one third of the U.S. natural gas production increase expected between 2013 to 2033 — some 9.1 billion cubic feet per day — will come from the Utica and Marcellus shale formations in the Northeast, oil and natural gas analytics firm said Tuesday. The U.S. natural-gas boom will trigger a “sea change” in prices and flows of the fuel, said Bentek. Thanks to the boom, fueled by shale exploration, the Northeast region will switch from the nation’s biggest gas importer to a net supplier. (MarketWatch, 10/8/13)
  • On a Roll: U.S. Domestic Natural Gas Production Expected to “Set Another Record High”: The U.S. EIA slightly raised its estimate for domestic natural gas production in 2013 on Tuesday, expecting output this year to be up about 1.2 percent from 2012’s record high levels. … If the forecast is realized, it would be the third straight year of record production. Domestic output in 2014 is expected to set another record high, up 0.43 bcfd to 70.43 bcfd. (Reuters, 10/8/13)
  • “U.S. Shale Revolution Leaving Europe In The Cold”: The shale gas revolution is only just beginning, but according to one leading analyst the U.K. and Europe have failed to capitalize on the maverick within the global energy market and are being left out in the cold. “I don’t think the U.K. is anywhere near catching up with the U.S.,” David Thomas, lead oil & gas analyst at Credit Suisse told CNBC. “You have to look at how much volume is currently being produced by the U.S., and the fact that it’s easy for the U.S. to carry on with its shale production.” … The U.S. has embraced shale gas production whole-heartedly, leading to a fall in domestic gas prices and making it possible that the country could achieve energy independence in oil and gas by 2035, according to the IEA. (CNBC, 10/9/13)
  • America Poised to be World’s Largest Petroleum Products Producer by Year’s End: The U.S. will emerge as the world’s top producer of petroleum products and natural gas this year, the federal government is predicting. …  By the end of 2013, the U.S. will produce more hydrocarbons than any other nation, surpassing both Saudi Arabia and Russia, and by a healthy margin, the agency says. … The U.S. will also achieve the greatest output of petroleum this year, EIA says, with its calculations including crude oil, natural gas liquids and condensates. (E&E News, 10/7/13)
  • Tightly-Regulated Shale Gas Production Repositions the U.S. as the World’s Biggest Producer: The U.S., according to The Wall Street Journal’s calculations, may now be the world’s biggest producer in the world of oil and natural gas. … The U.S. is producing about 22 million barrels per day of crude oil and its equivalent in natural gas and natural gas liquids. … U.S. shale formations hold more than a century’s worth of oil and gas. Shale formations are widespread but the U.S. is far ahead of every other nation in production technologyAbundant, affordable hydrocarbon brings enormous benefit. … The new energy supplies offer export opportunities that will bring wealth to the U.S., and usage opportunities at home, yielding new investment, jobs and production. And best of all this nation will not be held captive to foreign producers in the Middle East or Venezuela. (Boston Herald editorial, 10/6/13)

AMERICAN NATURAL GAS PROVIDES “ENORMOUS” ECONOMIC OPPORTUNITY

  • Fmr. Sec. of State Hillary Clinton Touts Job-Creating Shale Gas: Late into the lecture portion of [Sec. Hillary] Clinton’s Oneida County appearance, she referenced a report that the U.S. in on track to surpass Russia in domestic oil-and-gas production. That’s good news, Clinton said. “What that means for viable manufacturing and industrialization in this country is enormous,” she said to the crowd of 5,800 in Hamilton’s athletic field house. … The increase in domestic U.S. production has been tied directly to the rise of large-scale fracking, which has allowed drillers to target shale formations that were once thought unreachable. (State Politics Lohud Blogs, 10/7/13)
  • Shale Benefits Cascade Across Pa.’s Economy: “Before it was all about drilling and fracking and compressor stations. But now it’s capturing the downstream opportunities. This is unprecedented development,” said Marcellus Shale Coalition CEO Kathryn Klaber at the opening of the Energy Inc. Conference and Trade Show. “We have a lot of resource here and how we take advantage of it and the entrepreneurial opportunities will dictate how we take advantage of this opportunity.” … One of the biggest opportunities for the state in terms of downstream development is likely the transformation of the Marcus Hook refinery in Philadelphia and other projects likely for Philadelphia’s industrial complexes. Another related area of growth is in midstream companies like MarkWest building the infrastructure needed to separate natural gas liquids that can go places like Marcus Hook. MarkWest has 22 projects planned in the Marcellus region. (Pittsburgh Business Times, 10/8/13)
  • Safe Shale Development Supports 232K Pa. Jobs: Industries dependent on the Marcellus Shale employed nearly 232,000 workers in Pennsylvania during 1Q2013, according to a monthly report by the state Department of Labor & Industry. According to a 10-page report released on Oct. 1, during a four-year period — from 1Q2009 to 1Q2013, the latter being the most recent quarter with employment type figures available — employment in the “core” industries of the Marcellus increased 162.1%, with 17,414 new jobs created. During the same time frame, ancillary jobs rose 7.0% (13,352 jobs) and all jobs climbed 1.2% (63,078). … “The safe development of clean-burning shale gas continues to be a key cog in Pennsylvania’s economy, helping to create literally tens of thousands of good-paying jobs, especially along the robust supply chain, at a time when jobs are needed most.” … Wages were also markedly higher for Marcellus-related jobs. …the average core Marcellus job paid $83,305 a year, while ancillary Marcellus jobs paid $65,045.  … The Marcellus’ core and ancillary industries have also been adding jobs at a faster clip than other industries not related to shale. The core industries hired 35.0% more workers during 2Q2013. (NGI Shale Daily, 10/9/13)

POWERING AMERICA’S TRANSPORTATION SECTOR

  • UPS Investing $50M to Increase Natural Gas Stations: [UPS is] trying to capitalize on the enormous amounts of natural gas that has been unlocked in the U.S.. Natural gas is cheaper…and creates less earth-warming pollution, but it has been underutilized in vehicles because it requires additional infrastructure, such as fueling stations. …The Atlanta company said Tuesday that it will build nine fueling stations, bringing its total number of stations to 13. They will be located in Florida, Illinois, Indiana, Mississippi, Missouri, Ohio, Pennsylvania and Texas. “Building these fueling stations is a solid future investment for UPS,” said David Abney, the company’s chief operating officer. “Since vehicles represent approximately 35 percent of UPS’s carbon footprint, a cornerstone of the company’s environmental strategy is to support the development and use of lower-emission alternative fuels.” (Associated Press, 10/8/13)
  • Clean, Affordable Natural Gas to Power Long-Haul Engines: Technology that allows diesel engines to instead run primarily on natural gas could provide a economical way for railroads and shipping companies to shift their vast transportation systems over to natural gas. Such a shift could lower greenhouse gas emissions. … It could also save shippers money and lower the cost of shipped goods. … “The economics are very powerful,” says Mark Little, director of GE Global Research. … Low natural gas prices have recently increased demand and led engine makers to fine-tune the technology to meet emissions requirements. (MIT Technology Review, 10/8/13)

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