US crude oil production increased during 2014 by 1.2 million barrels per day to 8.7 million, the largest increase since recordkeeping began in 1900. On a percentage basis, output in 2014 increased by 16.2%, the highest growth rate since 1940. Most of the increase during 2014 came from shale and other deposits in the states of North Dakota, Texas, and New Mexico.

Rystad Energy estimates US annual oil production —crude oil plus lease condensate—will peak at 9.7 million barrels per day in September of this year assuming the world price of crude oil averages $55 per barrel.

US petroleum refiners are relying more on North American crude oil than at any time since 1986 as a glut of supply makes local oil cheaper than imports from overseas. Domestic production and imports from Canada and Mexico made up 85% of crude processed at US plants in January, the most since March 1986.

In 2010 only 55,000 barrels per day of crude oil was transported by railways in the US and between the US and Canada.  Last year this figure skyrocketed to over 1 million barrels per day.

India for the first time has purchased crude oil for its strategic petroleum reserve trade sources said this week, marking the start of a round of purchases by the world’s fourth-biggest oil consumer to build up emergency stockpiles.

The African Petroleum Producers Association, which represents oil and gas producers from Algeria to South Africa, has called for a cut in crude oil output globally. Angola and Algeria are trying to seek collaboration between members of OPEC and other significant oil producers to reduce output and stabilize world crude oil prices.

In the West African nation of Nigeriarevenue received from crude oil sales, taxes, and royalties has decreased from $45 billion in 2011 to $32.3 billion in 2014, according to a report by the International Monetary Fund. Additionally, between 2011 and 2014, crude oil production fell 7.5% from 2.38 barrels per day to 2.19 million largely due to stoppages associated with pipeline vandalism.

Australia’s shale oil and gas ambitions have been put on hold as Chevron Corp., ConocoPhillips, Hess Oil, and Statoil have pulled out of major projects as a result of the severe downturn in world crude oil prices. Getting access to Australia’s shale oil and gas was already challenging due to high drilling costs and the remote locations of its fields, with significant production now put off for many years.

The South American country of Argentina holds the world’s second largest shale gas and fourth largest shale oil reserves. This translates to an estimated 802 trillion cubic feet of technically recoverable shale gas and 27 billion barrels of shale oil. Yet Argentina’s vast shale plays have remained comparatively idle. Politics and economics are largely to blame. Investor confidence in Argentina has been damaged by nationalist politics. Exploration and production in Argentina is also expensive. It costs an estimated $11 million per well, a figure drillers hope to bring more into line with international standards of $7 million by the end of this year.

The number of plug-in electric vehicles registered in Australia jumped from 112 vehicles in 2010 to 1909 in 2014. Sales of EVs in this country have been slowed by the lack of infrastructure in the form of public recharging stations, concerns about the limited range of these vehicles, the higher initial price of these cars, and a lack of government subsidies to help offset the cost.

 

 

with h/t Tom Whipple

 

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