IEA, the International Energy Agency is expecting that the United States to challenge the position of Saudi Arabia as the top oil exporter of the world after concisely overtaking the OPEC kingpin to claim the number one position in the start of this year. The IEA said in its monthly report that booming shale production permitted the United States to close in on, and temporarily overtake the Kingdom of Saudi Arabia as the leading oil exporter of the world.
The installation of the required terminals and pipelines is continuing quickly, and that is a sign that ensures that the trend moves on. The IEA said that the United States shortly beat Saudi Arabia as the prominent oil exporter in June when exports of crude oil rushed over three million barrels per day (b/d). That boosted overall exports of crude oil and products to about nine million b/d.
On the other hand, during the same duration, KSA cut back on the exports of both crude and refined products. The oil-rich Saudi Arabia reclaimed the leading position in the month of July and August as the United States was affected by hurricane interruptions. The IEA said that running trade war also made it hard for shale shipments of the United States to discover markets during the last few months.
Energy Dominance of the United States
Regardless of the oil prices, the monthly report of the Paris-based energy agency appears at a time when the United States is actively chasing energy dominance. The deputy energy secretary of the United States said earlier this week that President Trump regularly talks about energy dominance. He said that the world usually asks what it means. It only means that the U.S. is going to produce as much energy as they can, as cleanly as they can, also as affordably as they can.
Furthermore, Dan Brouillette said that whatever happens to the world oil prices, whatever happens to the world electricity price, it does not really matter, then so be it. During the last ten years, the United States has over doubled oil production to 12.3 million b/d, making it the largest oil producer of the world. It now seems set to flood the international market of oil with even extra crude, putting downward pressure on oil prices at that time when the market is previously struggling to deal with excessively supply.
International Oil Prices
On Thursday morning, the international standard Brent crude traded at &61.05 per barrel which is up about 0.4 percent. Whereas West Texas Intermediate (WTI) of the United States stood at &56.04, which is up over 0.5 percent. Brent futures dropped over eighteen percent from a peak touched in April with WTI down more than fifteen percent during the same duration.
The IEA stated that during the last three months of the year, the United States expected to see a more build-out of export substructure that might allow for over four million barrel per day in crude exports. The energy agency added, with production growing strongly, the question to ask is can suppliers of United States crude price exports nicely enough to overtake international markets.