US oil production tops 10 mln. barrels per day

U.S. oil production broke 10 million barrels a day for the first time in 48 years.

While U.S. production has been rising as prices rose, the 10 million barrel mark is an important milestone that reinforces America's place in the energy big leagues and also its aspiration to use its new oil dominance in diplomacy.

"This is significant in market terms, and it's very significant psychologically. The U.S. is back big time as an oil producer and could be by next year the largest in the world. We're one of the big three now, and we could be number one," said Daniel Yergin, vice chairman IHS Markit.

Saudi Arabia was producing 10.6 million barrels a day before it cut back production to steady the oil price by reducing new supply, and Russia has been drilling about 11 million barrels a day.

The U.S. produced 10.038 million barrels a day in November, and produced 10.044 million in November, 1970. In weekly EIA data that will be revised, the U.S. produced 9.92 million barrels a day last week, up sharply from 8.9 million barrels a day a year ago.

"Just a decade ago, our net imports were 60 percent of total demand. Now, they're 20 percent.The U.S. could add upwards of 2 million barrels a day from where we are today by the end of 2019." said Yergin.

Source: Bloomberg Pro Terminal

Trader Bozhidar Arabadzhiev

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