Published By : 08 Dec 2015 | Published By : QYRESEARCH
Even after the current closures of oil rigs in the United States, cancellation of drilling projects in the shale oil industry in the country amidst declining oil prices, and spending cuts, Ernest Moniz, Energy Secretary of the US told CNBC that the oil production in the United States will most definitely recover.
Speaking to CNBC Ernest Moniz said that production of oil in the United States has not dropped dramatically. Rather, it has been gradually declining and compared to a few years ago, the production has increased by four million barrels per day.
Monez said that the Energy Information Administration anticipates the average oil production this year to remain above 9 million barrels per day so that the drop off is not seen as dangerous or steep. It is presumed that over a period of time, the drop off will witness a gradual reversal and that oil production in the country will be restored.
Monez added that the US is most definitely not limited in terms of resources, also noting that the production of natural gas in the country has continued to rise even despite reduced gas prices. He said that the first liquefied natural gas exports of the country are likely to enter the market in the early half of 2016.
The overall oil industry has been experiencing bleak times despite Monez’s optimisim and the US industry is most particularly in the spotlight with shale oil producers now resorting to major cutbacks after the dramatic decline in oil prices over the past year and a half. A barrel of the global benchmark Brent now costs approximately US$ 40, which in June last year cost US$ 114.
Oil prices have been declining sharply owing to a global glut in crude supply that has surpassed the demand by a wide margin.