President Donald Trump made good on his pledge to help America achieve “energy independence,” as for the first time in 75 years – the United States exported more oil than imported.
There’s a reason we’ve been seeing falling gas prices in the United States – oil production in the United States is booming. We’re no longer seeing the $4+ prices per gallon the nation saw under President Barack Obama. President Donald Trump has kept his campaign promise to ramp up the US oil industry, as lower gas prices reflect this fact.
The final week of November 2018 saw US net imports of crude oil and petroleum products fall to minus 211,000 barrels per day, according to a report by the US Energy Information and Administration. This negative number simply means that the US exported more oil than it imported. The US has been importing oil since 1949, but this is the first time in 75 years that America sent more oil out than it took in.
Actually, net imports of oil in the US peaked in 2005, hitting around 14 million barrels per day. But within the last few months, the US has only imported an average of 2 million barrels per day.
If you would have guessed that Saudi Arabia is the world’s largest producer of petroleum, you’d be wrong. You would’ve probably guessed Russian next – but no. The US has overtaken both of these countries in petroleum production.
As a result, the power once yielded by OPEC has been diminished.
In fact, as new pipelines are in the works, US crude exports are expected to rise even further.
The US production of oil has more than doubled since 2012. A lot of this has to do with new technologies that have been developed for extracting oil, such as horizontal drilling. Another major factor in the increase of oil production in the United States has to do with fracking and extracting oil from shale.