All Things Energy Volume 2 - U.S. Oil Independence

Video Transcript

Somewhere in the barrage of oil market-moving news and monthly reports released throughout this year we almost missed it: “Oil independence for the U.S. isn’t just a dream.“

Hi I’m Tamra Freeman with Breitling Energy and welcome back for our newest segment of “All Things Energy”.

The biggest clue might have come from the Energy Information Administration’s Short-Term Energy Outlook report, which said that U.S. crude-oil production in August 2013 hit the highest monthly level in 24 years. That’s a major step toward the energy independence the U.S. has been aiming for and may point to a future surplus of oil in the global market. The EIA also said domestic oil production is on track to score the biggest annual growth in the history of the U.S. oil industry — poised for a climb of 15.1% to 7.5 million barrels a day this year.

So far this year, U.S. government data shows that the nation has met 87% of its own energy needs, with the EIA showing current drilling activity as “stable” and expects it to last in the range of 10 more years, barring any external factors. Most importantly, our CEO, Chris Faulkner was recently quoted as saying “there is far more potentially productive oil shale in the U.S. than any of us in the industry even dreamed existed.” So if the current drilling rate continues, the U.S. should be near zero on oil imports in 10 years, plus or minus. That’s quite a turnaround folks. Not that long ago, oil independence was not a sure thing.

The boom in U.S. production is already making a big difference world wide. The International Energy Agency has recently confirmed a sizable production climb from non-OPEC oil producers, which include the U.S., and that helped to offset output losses from Libya, Syria and others as this incredible boom in U.S. production is now changing the global energy landscape forever.

Lets take a look at the Middle East.

Saudi Arabia has always been known as the swing oil producer, one that has the means and ability to step in and make up for any shortfalls in global output in the event of a significant drop elsewhere. But Saudi Arabia had help in that role. It was robust supply gains in Saudi Arabia and North America” that compensated for the sharply lower production numbers from Libya, Syria and much of the North Sea.

Concerns over supplies in the Middle East, with ongoing geopolitical uncertainty in Syria, oil disruptions in Nigeria and political instability in Libya and Egypt, contributed to a nearly 3% rise in oil prices in August 2013 alone.

The buzz about shale oil and gas is only getting louder. Texas, North Dakota, New Mexico and even California is getting into the shale gas boom that is fueling America’s energy revolution!

We’re seeing savvy investors already taking advantage of the nation’s incredible energy shift. You might not want to miss out.