Soaring U.S. crude oil production has upended global oil markets since it comes at a time when Russia and OPEC have cut their production volumes in order to slim the glut in the global oil pool.
On Tuesday, the International Energy Agency (IEA) disclosed that by 2019, the United States will overtake Russia and emerge as the world’s biggest producer of oil.
Fatih Birol, IEA’s Executive Director stated in Tokyo that the U.S. will overtake Russia as the biggest producer of crude oil “definitely next year”, if not in 2018.
Late last year, the output of U.S. crude oil, C-OUT-T-EIA, rose above 10 million barrels per day (bpd) for the first time since the 1970s and overtook Saudi Arabia’s top oil exporter PRODN-SA.
Early this month, the U.S. Energy Information Administration said, U.S. crude oil output would exceed 11 million bpd by late 2018. In comparison Russia’s top oil producer pumps just below 11 million bpd C-RU-OUT.
However, Birol said, he does not see U.S. oil production peaking before 2020; he also does not see U.S. crude output levels dipping in the next four years.
The surge in U.S. crude oil production comes at a time when other major producers, including Russia and Organization of the Petroleum Exporting Countries (OPEC) have voluntarily withheld their output levels in order to prop up prices.
Further the surging U.S. production is also eating away market shares of major oil producers in the fastest growing markets, such as India and China.
Incidentally, the net import of crude for the U.S. fell by 1.6 million bpd to 4.98 million bpd, its lowest levels since the EIA started recording the data in 2001.