Wednesday, July 17, 2013

U.S. Oil Production Rose at Record Pace on Shale, BP Review Says

U.S. oil production grew at the fastest pace since BP Plc (BP/) started keeping records in 1965 on unconventional sources such as shale and tight oil.
An increase in output of about 1 million barrels a day caused net oil imports to the U.S. to drop by 930,000 barrels a day and imports are now 36 percent below their 2005 peak, London-based BP said in its annual Statistical Review of World Energy today. The expansion of both oil and natural gas production in the U.S. was the fastest in the world last year.
The report highlights the potential scale of unconventional oil extraction, which involves fracturing underground rocks to tap resources that otherwise wouldn't flow to the surface. These technological advances will limit the influence of OPEC as North American techniques are replicated in Russia, China and Brazil, Nansen Saleri, the former head of reservoir management at Saudi Arabian Oil Co., said yesterday.
"The data show there is ample energy available," BP Chief Executive Officer Bob Dudley said in a statement. "Our challenge as an industry is to make the best choices about where to invest."
Growth in global energy consumption slowed to 1.8 percent last year from 2.4 percent in 2011, BP said. China and India accounted for 90 percent of the increase in demand. Emerging economies now account for 56 percent of the world's consumption, compared with 42 percent two decades ago.

Full article at: http://www.bloomberg.com/news/2013-06-12/u-s-oil-production-rose-at-record-pace-on-shale-bp-review-says.html

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