The United States became the world’s biggest oil producer in 2018, and over the next five years, the nation will take aim at becoming the top oil exporter, according to the International Energy Agency.
IEA forecasts U.S. exports of crude oil and petroleum products will nearly double, hitting about 9 million barrels per day by 2024. At that level, the U.S. will surpass Russia’s shipments and threaten to unseat Saudi Arabia, the current top exporter.
That’s incredible. For decades the US was totally dependent on oil from the Middle East. Now they will be producing more than Saudi Arabia thanks to fracking technology.
Pulling ahead of Russia and Saudi Arabia in exports would further erode their influence in the oil market.
Saudi Arabia and Russia have formed an alliance in recent years, coordinating oil production among OPEC and other oil-producing countries. The so-called OPEC+ alliance has capped output for much of the last two years, helping to boost oil prices after a punishing downturn.
OPEC is basically a cartel. The less market power they have, the better it is for consumers.