US asserts its position as the world's largest oil and gas producer

The US has succeeded in overtaking Russia and Saudi Arabia to become the largest producer of crude and natural gas liquids. A recent research revealed in the past six months the US has had overwhelming success in the oil and gas sector.

Natural gas prices in the US are on the lower end compared to international prices as a result of the shale gas revolution.

In North America, the industrial sector has witnessed mixed results as some segments have had only moderate growth. Increased production of oil has obviously led to improved employment rates. Wages have also improved in states with greatest oil output in the past five years.

Investment in the oil and natural gas sector accounts for nearly 20 per cent of the total US private fixed  structure investment- a figure which is as high as residential investment.

Looking at US inflation before and after shale oil boom, inflation drivers have moved from labour market slack to production slack and increased concerns about inflationary fiscal policy. However, oil prices continue to remain strong in both periods.

Global oil producers have been struggling due to disruptions in engineering or geopolitics.

The shale gas boom in the US has had a major impact on the US and global economies. Oil production in the US has increased by,70 per cent, while production of natural gas expanded by 40 per cent, helping them overtake Russia and Saudi Arabia.

LNG and crude oil imports into the US have declined as a result of expanding supply. Thus domestic production has helped America reduce dependence on foreign fuels and spends less than 1.5 per cent of national revenue to purchase foreign oil and gas- a marked improvement over the situation in 2008.

Follows us:
Facebook, Twitter, Linkedin
For More info: www.globalchemicalprice.com