The Miracle Of US Shale
Here's a morale-boosting exercise in these days of apocalyptic oil industry ruminations. Let's revist the glory that was (and will be again) U.S. Shale. With this chart Mark P. Mills of the Manhattan Institute (using data from the Energy Information Agency) reminds us that "The invention by American entrepreneurs of a new way to manufacture oil from shale, at volumes and prices that have moved global markets, has been the biggest disruption to the energy land scape in 30 years. If the U.S. shale industry alone were a country,it would rank as the world’s fifth-largest hydrocarbon producer. The last time so much oil was added in such a short period to world markets was in 1986, when Saudi Arabia—which then enjoyed far greater spare capacity than it now does - made a strategic decision to increase output by 3 MMbd. That flood of oil drove global prices down to $20 per barrel (2014 USD). This time, the plunge in prices was caused not by a foreign oil monarchy but by thousands of American entrepreneurs drilling on state and private lands." Sweet.