U.S. Passes Saudi Arabia as World’s Largest Oil Producer
The United States has overtaken Saudi Arabia as the world largest oil producer. The output includes natural gas and biofuels at the tune of 3.2 million barrels a day. This is significant as the U.S. has turned into the largest exporter of gasoline.
China has just overtaken the United States as the world largest importer of crude oil but the rise in domestic output cuts U.S. dependency from overseas. The reason for the increase is because of the increase of shale oil.
Shale oil is from heating rock that releases oil like liquids but the oil isn’t exactly like the oil extracted from the ground and is more expensive because the extraction process is more expensive. The oil shale is first mined then heated and the oil must be separated.
Experts expect the United States to continue to be the world’s largest oil producer for many years to come which could be good news for medium to small companies in the oil industry.