Yesterday the U.S. Energy Information Administration released preliminary estimates that the United States has “likely surpassed” Russia as the world’s biggest oil producer for the first time since the early 1970s. This news comes just months after the U.S. passed Saudi Arabia’s production, thanks in large part to Texas, which could soon surpass Iraq’s production.
In a recent report, CNN referred to Texas as an “oil superpower,” stating:
“Major oil producers including BP (BP) and ExxonMobil (XOM) have shelled out billions of dollars in recent years to get a piece of the action in the Permian Basin. The Lone Star state is on track to produce more oil than either Iran or Iraq. That would make Texas No. 3 in the world if it were a country. And the state’s biggest port district recently exported more crude oil than it imported.”
Bob McNally, president of Rapidan Energy Group and a former energy official in the Bush Administration, credited the many factors that led to this historic achievement for the U.S.:
“It’s all about technological improvements, supported by ample capital to invest, and the ingenuity of American oil drillers.”