Saudi Arabia overtaken by U.S. as largest oil producer
This year, crude oil output and the production of liquids separated from natural gas in the US exceeded the production in both Saudi Arabia and Russia. The daily output in the US exceeded 11 million barrels in the first half of this year and is expected to rise to 13.1 million barrels a day in 2019. The report said production will remain at the same level for at least 10 years.
"The US increase in supply is a very meaningful chunk of oil. The shale boom is playing a key role in the US recovery. If the US didn't have this energy supply, prices at the pump would be completely unaffordable," said Francisco Blanch, head of commodities research, Bank of America.
Oil extraction is increasing at shale formations in Texas and North Dakota as companies continue to extract shale oil through fracking. ■