US elections 2012: Oil boom in the US means more good news for Obama
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US elections 2012: Oil boom in the US means more good news for Obama

Washington : DC : USA | Oct 28, 2012 at 8:03 AM PDT
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romney challenges obama on oil - 2nd debate

Reports of an oil boom in the US are yet another feather in the cap of President Barack Obama, and this boom has come as a surprise to even the experts.

Needless to say - this oil boom in the US would spell doom for oil producers in Saudi Arabia, especially Iran.

This news also shows that the Republican claim is not based on realities – the Republicans have been insisting that that the Obama administration wants to leave the US vulnerable to sourcing oil from foreign sources of energy.

That theory now becomes obsolete when the US has discovered how to reduce dependence of foreign supplies.

This would also mean that the oil produced by the US would throw a challenge to the conventional oil production countries like Saudi Arabia and, in fact, could overtake the oil production in the Arab countries.

The extent of oil availability - Reports indicate that the US production of crude and other liquid hydrocarbons is set to rise by 7 percent to an approximate value of 10.9 million barrels per day – once this happens, it would be the fourth straight year of crude increases and the biggest single-year gain since 1951.

It seems this has been made possible due to improved drilling methods and techniques and also use of more sophisticated equipment.

Statistically, the forecasts of the Energy Department shows the US production of crude and other liquid hydrocarbons, which includes biofuels, would come to approximately 11.4 million barrels per day next year – this would be slightly less than Saudi Arabia's output of 11.6 million barrels.

Incidentally, the Americans use nearly 18.7 million barrels per day – hence, there is always a shortfall and consequent dependence on other countries to fulfill the shortfall.

However, the forecast is that the US production could reach 13 million to 15 million barrels per day by 2020 – that would transform the North America into "the new Middle East."

Effects of the newfound oil boom – With the increase in domestic production, coupled with improved fuel efficiency of the vehicles on the roads, it is expected that imports would reduce substantially and could even fall by half by the end of the decade.

However, the increase in production would not mean cheaper gasoline at the pump, and the prices would probably remain unchanged for some more time because of the growing demand for oil in developing nations apart from political instability in the Middle East and North Africa.

The bottom line is - producing more oil domestically, and importing less, automatically gives a much-needed boost to the economy.

For the records, ExxonMobil had last month agreed to spend $1.6 billion to increase its U.S. oil holdings.

The Royal Dutch Shell also looks upon the US as one of the most promising places to drill.

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prabirghose is based in Nāshik, Maharashtra, India, and is an Anchor on Allvoices.
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  • Correction: US Oil Boom story - Yahoo! Finance

    Submitted By: prabirghose | over 1 year ago
    NEW YORK (AP) -- U.S. oil output is surging so fast that the United States could soon overtake Saudi Arabia as the world's biggest producer. Driven by high prices and new drilling methods, U.S. production of crude and other liquid hydrocarbons is on ...
  • U.S. oil boom still on upswing | FLORIDA TODAY | floridatoday.com

    Submitted By: prabirghose | over 1 year ago
    NEW YORK — U.S. oil output is surging so fast that the United States could soon overtake Saudi Arabia as the world�s biggest producer. Driven by high prices and new drilling methods, U.S. production of crude and other liquid hydrocarbons is on track ...
  • World?s spare oil...

      Arab News
    Sunday 28 October 2012 Last Update 28 October 2012 1:59 am The world's spare oil production capacity outside of Iran rose in last two months as gasoline demand waned in the US and oil use for power generation fell in the Middle East, according to...

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