The future of the U.S. oil industry could not look more promising. The U.S. is already the world’s top producer of oil (due largely in part to the success of the Permian Basin), and it seems there are no signs of slowing. Domestic oil production was at approximately 11.6 million barrels of oil per day (bopd) this time last year, compared to the current 12.6 million bopd, and experts are projecting over 13 million in 2020. The recent surge is no accident. The advent of fracking has made the Permian Basin responsible for roughly a third of total U.S. production, and with Occidental’s recent and record-breaking acquisition of Anadarko Petroleum Corp. for $38 billion, the industry outlook is optimistic.
According to the U.S. Energy Information Agency, about 11% of domestic petroleum consumption came from foreign countries in 2018, with demand for about 20.5 million barrels of oil. If the current growth trends continue, the U.S. would be able to meet that demand in a few years, potentially making the U.S. energy-independent!
It should be noted that the U.S. Geological Survey assessed roughly 46.3 billion barrels of recoverable oil at the close of 2018. With such a massive supply, the chances of the U.S. becoming independent of foreign oil are quite real, and if (or when) that happens, it would be extremely beneficial for the U.S. as a whole. At the very least, it should encourage further development of these oil-rich fields, creating more jobs and strengthening the economy. Be on the lookout these next few years as they could be some of the best for the U.S. oil industry.