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US oil production hits record high
US oil production hits record high

The US plans to become the world leader in oil production in record time has been realized. American oil producers have updated the record high, having increased output to almost 12 million barrels per day. So, other market participants, especially OPEC and Russia, have to reckon with such a player. In addition, the growth in production was not caused by an increasing number of drilling rigs. In other words, Americans just boost productivity and enhance work efficiency. Over the year, local oil producers have expanded output by 1.8 million barrels per day, overtaking Saudi Arabia and Russia. US President Donald Trump strives to keep his campaign promises, one of which was the intention to make the sector of the economy leading. So, in the near future, the United States will no doubt play a major role in the global oil market. This is confirmed by the US Department of Energy forecasts which include further expansion of oil output.

The balance of power in the global oil market has changed considerably. At the beginning of 2018, the share of OPEC in the world market was 32.6%, while at the beginning of this year it dropped to the cartel's historical low, 30.6%. According to estimates, by the end of the current year, OPEC oil production will account for only 30.1% of world consumption, and a year later, its share will slump to 29.7%. Compared to the levels of the 1970s, OPEC lost almost half of the market: at the time of the cartel's establishment, it was estimated at 53% of global oil production.

Published: 2019-01-29 09:12:01 UTC
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