Friday, September 13, 2013

US Oil Production Surges To Highest Level In 24 Years But Oil Prices Keep Rising

This summer teaches the harsh lesson that the US cannot escape global oil pricing, even when our domestic oil production soars.  Indeed, US oil production in August reached the highest level since 1989 or a long 24 years ago, but oil prices kept rising all summer long.

"U.S. crude oil production increased to an average of 7.6 million bbl/d in August, the highest monthly level of production since 1989. EIA forecasts U.S. total crude oil production will average 7.5 million bbl/d in 2013 and 8.4 million bbl/d in 2014, about 0.1 million bbl/d and 0.2 million bbl/d higher, respectively, than forecast in last month’s STEO."

The US domestic oil boom is growing every month and could ultimately surpass Saudi Arabia's production.  Despite this massive and new production, EIA reports the following about price:

"Monthly average crude oil prices increased for the fourth consecutive month in August 2013, as supply disruptions in Libya increased and concerns over the conflict in Syria intensified."

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