North America Tipped for Majority of Growth in Non-OPEC Oil Supply For Next Two Years

By on July 15, 2013. Posted in , . Tagged as , , , , .

The US is becoming a major oil player once again.

North America Tipped for Majority of Growth in Non-OPEC Oil Supply For Next Two Years

According to a report by the U.S. Energy Information Administration issued earlier this week, production of liquid fuels in non-OPEC countries has been predicted to grow by 1.2 million barrels per day in 2013.

It has been projected to increase by 1.6 million barrels per day in 2014.

The Energy Information Administration has stated that the majority of this growth is likely to be seen in North America. One of the reasons given for this is the continuing increase in production from tight oil formations in the U.S.

Geopolitical Change

It is looking as if the U.S. is a major factor in the increase in oil production in non-OPEC nations.

Oil and gas investments in countries that do not fall within the OPEC umbrella are helping to change the global power structure. Individuals who invest in oil and gas in non-OPEC countries are facilitating a decrease in their home nations’ reliance upon external energy sources.

Social commentators predict that the amount of power held by OPEC nations such as Iran and Russia is likely to fall as a result of the increase in production in non-OPEC countries. U.S. political clout will be likely to increase as a result of this.

Altering the Global Political Landscape

As America produces more and more oil, Saudi Arabia will be likely to exert less power over the U.S. and our government will have less motivation to comply with Saudi geopolitical interests. Oil investments in companies based in the United States are endowing the nation with a greater capacity for independence in its actions in the Middle East.

The growth in oil production in non-OPEC nations is also liable have a major impact upon Russia. This nation has previously tended to rely upon its oil industry as a means of furthering its foreign agenda.

The increase in non-OPEC production will reduce the amount of power that Russia is capable of wielding.

Boom is Here to Stay

The U.S. Energy Information Administration also predicts that the total production of crude oil in the United States will stand at 7.3 barrels per day for 2013.

It is projected to reach 8.1 million barrels per day in 2014.

It is clear from these statistics that the U.S. oil boom is far from over. The nation will continue to enjoy high levels of oil production throughout the years to come.

Fall in Oil Imports to the U.S.

Imports of oil into the United States are also declining.

The Energy Information Administration predicts that net imports will fall to an average rate of 5.7 million barrels per day by 2014.

U.S. oil production is going from strength to strength. It is continuing to speed up, creating jobs, improving the economy and making the nation less reliant upon external sources of this commodity.

The country looks set to comprise a large proportion of non-OPEC oil production well into the future. This will boost its geopolitical clout and mean that it can act with a greater degree of independence in the Middle East.

Image: Kevin

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