Posted August 27, 2014
In the chart below, the U.S. Energy Information Administration (EIA) plots data showing what a number of experts have been saying – that America’s domestic energy surge has countered a rise in unexpected supply disruptions around the globe in recent years:
EIA says U.S. liquid fuels production – including crude oil, hydrocarbon gas liquids, biofuels and refinery processing gain – grew by more than 4 million barrels per day (bpd) from January 2011 to July 2014. Of that total, 3 million bpd was growth in crude output. Over the same period unplanned global supply disruptions as calculated by EIA grew by 2.8 million bpd. The result is a more stable global market for crude. EIA:
U.S. production growth, the main factor counterbalancing the supply disruptions on the global oil market, has contributed to a decrease in crude oil price volatility since 2011. Over the past 13 months, the monthly average Brent price has moved within a narrow $5 per barrel range, between $107 per barrel and $112 per barrel. In contrast, the range of monthly average Brent prices over the prior 13-month period (June 2012-June 2013) was $21 per barrel.
When talking about greater American energy security, the point EIA makes is important. Oil is a globally traded commodity, and volatility in the crude market impacts our economy and those of other countries. Meanwhile, more U.S. oil entering the global supply makes that supply more stable, which protects economies from price shocks.Stabilizing supply is one effect of America’s energy revolution – just one of the ways an energy superpower can have positive effect throughout the world.
ABOUT THE AUTHOR
Mark Green joined API after a career in newspaper journalism, including 16 years as national editorial writer for The Oklahoman in the paper’s Washington bureau. Mark also was a reporter, copy editor and sports editor. He earned his journalism degree from the University of Oklahoma and master’s in journalism and public affairs from American University. He and his wife Pamela live in Occoquan, Va., where they enjoy their four grandchildren.