WorldWide Drilling Resource

44 SEPTEMBER 2015 WorldWide Drilling Resource ® The World’s Largest Producer of Petroleum and Natural Gas Adapted from Information by the U.S. Energy Information Administration According to the most recent U.S. Energy Information Administration (EIA) estimates, the United States continued to be the world's top producer of petroleum and natural gas hydrocarbons in 2014. U.S. hydrocarbon production exceeded the production rates of both Russia and Saudi Arabia, the second- and third-largest pro- ducers. For the United States and Russia, total petroleum and natural gas hydrocarbon production, in terms of energy content, was nearly evenly split between petroleum and natural gas. Saudi Arabia's production, on the other hand, heavily favored petroleum. Thanks primarily to increased production in the tight oil formations and shale gas fields of Texas and North Dakota, U.S. petroleum production in- creased by more than 11 quadrillion Btu since 2008. The 50% decline in crude oil prices in the second half of 2014, had little affect on production with an increase of 3 quadrillion Btu (1.6 million barrels per day) in the U.S. in 2014. Natural gas production also showed a sizable increase of 5 quadrillion Btu (13.9 billion cubic feet per day) over the past five years. Combined hydrocarbon output in Russia increased by 3 quadrillion Btu, and in Saudi Arabia by 4 quadrillion Btu over the past five years. Although Russian petroleum production continued to increase, natural gas production declined because of weak European economic growth and a warm 2013-14 winter which reduced demand in Russia's primary market for gas exports. While total petroleum and natural gas hydrocarbon production esti- mates for the United States and Russia in 2011 were roughly the same, by 2014, U.S. production exceeded Russian production by almost 12 quadrillion Btu. Saudi Arabia did not cut production in the fall of 2014 when falling oil prices and growing inventories of oil exceeded demand. As a result, Saudi Arabia's total petroleum and natural gas hydrocarbon production was nearly unchanged from 2013. With the increase in U.S. production, the United States produced nearly twice the petroleum and natural gas hydrocarbons as produced by Saudi Arabia in 2014. The U.S. crude oil production (including lease condensate) increase during 2014 was the largest volume increase since recordkeeping began in 1900. Will this trend continue for 2015? Stay tuned to WWDR to find out.