US Energy Boom Better Than Sanctions Against Russia
This opinion piece presents the opinions of the author.
It does not necessarily reflect the views of Rigzone.
U.S. oil production is surging, and it's helping to cripple the Russian economy. It’s a win-win situation
With 40 percent of the Russian economy hinging on oil and gas sales, America's oil and gas boom is doing more to bring President Vladimir Putin to his knees than any of the sanctions being imposed by the U.S. and Europe.
Competition in the form of increased U.S. energy exports is the last thing Putin wants to see, so that's exactly what we should do. Russia is currently the third-largest oil producer and the top exporter of natural gas, and you better believe that Putin uses these advantages to push his agenda regionally and globally.
Russia needs oil prices to stay above $110 per barrel to keep its budget balanced, but on August 20 Reuters reported that Russian oil is below $100 per barrel.
The U.S. has added roughly 3 million barrels per day to its oil production in the last five years and is on track to surpass Saudi Arabian oil output by 2017. If the U.S. government can get out of the way of progress, the U.S. can increase the downward pressure on Russian and global markets. The U.S. isn’t likely to be able to export much crude, but any amount of exports can help create greater investment certainty that could ultimately escalate U.S. production.
The U.S. also recently surpassed Russia as the world’s top natural gas producer. If ExxonMobil is correct in its projection that natural gas will become the second most common energy source by 2025, the American shale boom could inflict even greater pain on Russia by causing oil exports to plummet by 25 percent after 2015.
123
View Full Article
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- USA Driving Activity to Increase to All-Time Highs
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- I Squared Eyes Full Ownership of Europe Gas Storage Firm
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension