According to reports that OPEC is considering expanding oil drilling in the Saudi Arabian desert, North Dakota shale and Alberta’s tar sands, industry analyst Mike Taylor said “that would be lunacy.”
In an interview with the Wall Street Journal, Taylor said:
Given the health of the oil price and the importance of the North American and Middle East markets, the group’s decision-making agenda cannot be about playing a secondary role to Mideast production.
The most recent data from the US Energy Information Administration indicate that Saudi Arabia produced 9.55 million barrels per day in June, and that the shale oil field boom in North Dakota produced 11.39 million barrels a day in the same month.
Despite this, Taylor said that despite North America’s oil shale boom the two countries would have the same production in the next three years.
The recent frenzy of energy drilling in the US is not new. In 2014, the US became the world’s largest producer of crude oil. According to the EIA, during 2015 and 2016 the US produced nearly 10.7 million barrels of crude oil per day – an increase of over 4 million barrels per day from 2014.
The US currently holds the largest estimated oil reserves in the world, with more than 260 billion barrels estimated to be contained in the Bakken and Three Forks formations, the Permian Basin and the Eagle Ford in Texas, as well as the Eagle Ford shale in South Texas.
Production of natural gas liquids (NGLs) has also increased rapidly in the past five years, as the shale revolution has led to unprecedented oil and gas production.