By the end of the year, the US will be producing more oil and gas than any other country in the world, displacing Russia, the former number one. That’s the finding of a new analysis conducted by the Wall Street Journal, highlighting the result of what has become a singularly American success story: the shale energy revolution. The WSJ reports:
The U.S. produced the equivalent of about 22 million barrels a day of oil, natural gas and related fuels in July, according to figures from the EIA and the International Energy Agency. Neither agency has data for Russia’s gas output this year, but Moscow’s forecast for 2013 oil-and-gas production works out to about 21.8 million barrels a day. […]
And while energy is far from a zero-sum game, that doesn’t mean there aren’t some losers. America’s ascendancy does seem to be coming at Russia’s expense:
“Russia looks like the main loser in the global market,” said Tatiana Mitrova, of the Russian Academy of Sciences’ Energy Research Institute. More than 40% of Russia’s budget comes from oil-and-gas related duties and taxes, she said.
Russian oil and gas production isn’t keeping up with the American shale boom, and Russia has been very slow to explore its own prodigious shale resources. Its energy clout is just about the only thing keeping it relevant in geopolitics. Given that fact, America’s leap into first place may be a bigger deal for Moscow than it is for Washington.[North America image courtesy of Shutterstock]