Friday, January 20, 2012
Total U.S. and Canadian crude oil production is projected to reach a record high in 2016 of more than12 million barrels per day, outpacing U.S. demand growth. Overseas U.S. oil imports are projected to drop 41% by 2016 as they are pushed out by this new production.
EVERGREEN, CO (January 20, 2012) – BENTEK Energy, a leading energy markets information and analytics company, today announced a new Market Alert, Crude Awakening: Shale Boom Hits Oil, which reports U.S. and Canadian crude oil production will grow 3.1 million barrels per day, or 36%, over the next five years. BENTEK expects the U.S. to increase oil production 2.2 million barrels per day during this time, most of which will be light or intermediate crudes. In addition, crude oil imports from Canada to the U.S. are expected to rise 900,000 barrels per day. BENTEK anticipates the significant increase in crude oil supply will outpace demand growth, leading to downward pressure on U.S. oil prices relative to West Texas Intermediate (WTI) and a continuation of deep discounts to international prices. BENTEK’s Market Alert states that this will prompt foreign suppliers to seek other international markets for their light crude. Excluding Canada, BENTEK expects total U.S. imports of foreign oil to fall 41% or more than 2.8 million barrels per day by 2016.
“This supply growth will have a profound impact on the U.S. oil market and energy policy,” noted Adam Bedard, senior director of energy analysis at BENTEK Energy. “The resurgence of U.S. oil production should greatly reduce the need for foreign oil over the next five years. Combined with the recent surge in natural gas and natural gas liquids production, the U.S. has been propelled back to the forefront of the global energy producers and innovators.”
BENTEK’s new Market Alert, Crude Awakening: Shale Boom Hits Oil, provides a comprehensive review of the U.S. oil market and its potential growth over the next five years, including implicit industry challenges and implications. This Market Alert details current drilling and production activity in the most active U.S. and Canadian oil plays, including five-year production forecasts. Crude Awakening: Shale Boom Hits Oil is made up of six individual reports that focus on specific logistical groupings of the major U.S. petroleum districts (PADDs 1 through 5), Canada and a final section that summarizes the major report conclusions.
For more information about BENTEK’s Crude Awakening: Shale Boom Hits Oil Market Alert or BENTEK’s full line of Crude Oil Production Monitors, go to www.bentekenergy.com or call 1-888-251-1264.