US secretary of state lauds shale revolution in energy conference keynote
Mike Pompeo will be in Houston today to deliver a keynote address at CERAWeek—an annual gathering for top energy producers in the Americas.
The speech will focus on how the US’ “energy revolution” strengthens national security. The US has recently become the world’s largest oil producer, pumping out some 12.1 million barrels per day (bpd) and exporting over 3 million bpd. Those numbers are only expected to rise, with production in Texas’ Permian Basin alone expected to more than double to 8 million bpd within the next four years.
The US’ transformation into an energy powerhouse has allowed it some flexibility in dealing with other major oil producers. Sanctions on Venezuela and Iran—cutting oil production to around 500,000 and 1 million bpd in those countries, respectively—should have surged prices, but increased US output has kept oil at around $70 a barrel.
Washington’s oil leverage should increase further when environmental regulations requiring ships to use lighter crude kick in next January. The shale that the US produces is among the lightest oil in the world, so expected increases in both supply and demand for American oil over the coming years paints a rosy medium-term outlook for the industry.
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