US Shale production boom has resulted in a huge supply glut of fuel in recent months - in fact it was one of the reasons why OPEC + had to pledge their cut of production by millions of barrels in order to bring the value of the WTI up again, which track oil commodity prices. People have a choice to choose natural gas like Shale gas, and this substitutable fuel to oil has created a decreased demand in oil that led to this supply glut issue.
Over the past decade, U.S. oil production has more than doubled, surging from 5 million barrels per day (mb/d) to close to 12 mb/d today. Natural gas also rose significantly, rising from 21 trillion cubic feet per year (Tcf/y) in 2008 to 29 Tcf/y in 2017. (taken from oilprice.com)
And US shale production doesn't seem to be slowing at all, in fact it slated to increase further. So, as shale gas production continues to increase, our oil markets may take further hits at their demand for oil, since gas is seen to burn slightly cleaner than oil, albeit no where close to being a sustainable source of energy. But... it's cheap, and when things are cheap and easy to get, then people tend to forget about our long term sustainable energy goals.
US Shale production boom has resulted in a huge supply glut of fuel in recent months - in fact it was one of the reasons why OPEC + had to pledge their cut of production by millions of barrels in order to bring the value of the WTI up again, which track oil commodity prices. People have a choice to choose natural gas like Shale gas, and this substitutable fuel to oil has created a decreased demand in oil that led to this supply glut issue.
Over the past decade, U.S. oil production has more than doubled, surging from 5 million barrels per day (mb/d) to close to 12 mb/d today. Natural gas also rose significantly, rising from 21 trillion cubic feet per year (Tcf/y) in 2008 to 29 Tcf/y in 2017. (taken from oilprice.com)
And US shale production doesn't seem to be slowing at all, in fact it slated to increase further. So, as shale gas production continues to increase, our oil markets may take further hits at their demand for oil, since gas is seen to burn slightly cleaner than oil, albeit no where close to being a sustainable source of energy. But... it's cheap, and when things are cheap and easy to get, then people tend to forget about our long term sustainable energy goals.