US Petroleum Production Hits Record 18.2 Million bpd
Posted: 26/Mar/2020

Despite chaos from the coronavirus pandemic and a price war between Saudi Arabia and Russia, the United States set a new petroleum production record of 18.2 million barrels per day.

For the second week of March, the United States produced a record 13.1 million barrels of crude oil and a record 5.1 million barrels of gas liquids each day, according to The Epoch Times.

According to the International Energy Association’s World Energy Outlook, the United States will account for 85 per cent of all petroleum and 30 percent of all gas increases over the next decade.

There are 1,500 microbes that are sources for disease among the human population, with new mutations discovered each year. Given the probability of a global pandemic has always been high and modern economic activities cannot be sustained without continuous deliveries of food and electricity, nations should have been energy prepared.

But 35 nations, including five US states, imposing obligatory shelter-in-place orders affecting an estimated 900 million people has caused a global stampede to buy food. With protein and paper items already being rationed, the crisis has exposed the existential risks to nations that are dependent on international supply chains for the fuel to distribute food and generate electricity.

Total inventories of crude oil and other liquids for the 35 most-advanced nations in Europe, the Americas and the Pacific that make up the Organisation for Economic Cooperation and Development equalled 62.6 days at the end of February.

America launched the modern world on August 27, 1859, when Ed Drake completed drilling the first successful oil well in Titusville, Pennsylvania.

Fifty-one years later, the US passed the United Kingdom as the world’s largest manufacturer.

With a manufacturing input average for energy costs of 13.5 per cent and 8.5 per cent for labour, the US held the manufacturing crown for a century based on cheap and abundant energy supplies.

But US daily production peaked in 1970 at 9.6 million barrels of oil and 2.1 million barrels of gas liquids, and then steadily declined to bottom at 3.8 million barrels of oil and 0.8 million barrels of gas liquids in September 2005.

As the US lost its energy cost advantage, China’s much lower labour costs and lax environmental enforcement acted as a magnet for outsourcing thousands of US factories.
 
With the great financial crisis, China took the manufacturing crown in 2010.

But to continue powering its “factory to the world” over the next decade, China’s daily voracious growth saw its crude oil imports rise from 4.7 million barrels to 10.1 million bpd. But the shale fracking boom drove US imports down from 10 million barrels a day in 2010 to zero in late 2019. The US is a net petroleum exporter in 2020.