American oil dominance is on the rise. Crude oil exports in the United States continue to show its strength with demand coming from many buyers around the world. In fact, the US is on track of being the world’s largest oil producer by the end of 2019 due to the steady output from shale fields according to the international energy agency.
U.S crude production could surpass 10 million barrels a day this year, rasing original forecasts by 260,000 barrels/day. This is setting the United States up to surpass Saudi Arabia and Russia to claim the title of being the world’s largest oil producer.
US oil producers have been forced to act prudently to combat depressed oil prices, which has resulted in companies cutting costs rapidly and becoming more effective when utilizing resources.
However, keep in mind a significant catalyst to this strong production is cuts to OPEC. Last year on January 10, producers and OPEC agreed to slash output to push up prices which had a 95% compliance rate last year.
Countries that are rich in resources collectively cut supplies by 1,8m b/d which reduced inventories and helped bolster the oil market. This is one of the main drivers bringing crude over $70 a barrel.