With rebels finally closing in on Tripoli, people have revamped their speculations about Libya’s troubled oil production. The six month conflict has reduced Libyan oil production from about 1.6 million barrels per day before the start to 50,000 barrels per day now. Although analysts are hopeful that the fall of the Gaddafi regime will enable production to increase to about 300,000 barrels per day in a few months, most are doubtful that it will return to pre-conflict levels until after 2013.
IPAA released an analysis this week which pitted the decreasing Libyan oil production against the increasing American oil production. When juxtaposed against one another, it’s the outstanding gains of U.S. production stand crystal clear. Click here to view the full analysis.
Our economists noted:
“Although all Middle Eastern conflicts make us question the future stability of the oil market, the real answer lies within our own borders. The United States, due to shale and tight oil discoveries cropping up throughout the lower 48 states, is more than making up for Libya’s decreased oil production.”
Shocks in the oil supply are no small matter. However, our oil producers in America—lead by independent producers opening up established and emerging shale plays—have our energy needs covered. These numbers reflect the industry excitement demonstrated at the Summer NAPE® conference, which I blogged on earlier this week.
Clearly, the United States is at a crossroads: we can further restrict our own energy development and leave ourselves susceptible to oil supply disruptions from turbulent conflicts overseas, or we can increase our energy security by enacting energy policy that promotes oil production of our vast resources here at home—which will also provide jobs and give our economy a much-needed boost.
Please visit www.oilindependents.org for more information on how America’s independent oil producers are influencing the global energy market.
