Posts Tagged ‘oil prices’
Hooray, gasoline prices at the pumps have declined to their lowest levels this year! Better yet, they’re looking to head even lower, as oil prices begin to unravel below $100.00 per barrel.
The level of oil reserves jumped by 5.2 million barrels for the week ended October 18, according to the Energy Information Administration (EIA). There are some 379.8 million barrels of oil in our reserves, and that doesn’t include those in the Strategic Petroleum Reserve.
With the rise in reserves and lower demand due to the recent government impasse, the country is importing only 7.7 million barrels per day versus the four-week average of 8.0 million, according to the EIA. (Source: “Summary of Weekly Petroleum Data for the Week Ending October 18,” Energy Information Administration web site, last accessed October 25, 2013.)
Today, the United States is less dependent on foreign oil than at any time in its recent history. The country is producing more domestic oil specifically from the shale oil in North Dakota and Montana. (Read “Why You Shouldn’t Be Worried About Surging Oil Prices.”).
The EIA says North America is now the biggest producer of usable shale oil in the world, and it’s only going to get bigger as new technologies surface that can extract even harder to get oil. In 2012, shale gas represented 39% of total natural gas production in 2012 in the United States, according to the EIA. Canada was second at 15%.
In my view, the rapid development of shale oil will continue to lessen the country’s dependence on OPEC oil, and this is good for both the economy and … Read More
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