As the world grapples with the existential crisis of climate change, environmental activists want President Joe Biden to phase out the oil industry, and Republicans argue he’s already doing that. Meanwhile, the surprising reality is the United States is pumping oil at a blistering pace and is on track to produce more oil than any country has in history.
The United States is set to produce a global record of 13.3 million barrels per day of crude and condensate during the fourth quarter of this year, according to a report published Tuesday by S&P Global Commodity Insights.
Last month, weekly US oil production hit 13.2 million barrels per day, according to the US Energy Information Administration. That’s just above the Donald Trump-era record of 13.1 million set in early 2020 just before the Covid-19 crisis sent output and prices crashing.
That’s been helping to keep a lid on crude and gasoline prices.
What about US oil consumption - production is one thing, but is it displacing imports, or really part of higher consumption?
We’re producing 13.2 million a day, exporting 9.5 million a day, but burning 20.1 million a day.
13.2 - 9.5 = 3.7 - 20.1 = -16.4 per day in the hole. Importing makes up the difference.
Why does the US export oil it needs domestically?
Because the oil industry is not nationalized, each oil company does what they think is best for their own bottom line, and if they can make more money by exporting it, they do.