But first which country is the world's biggest crude oil producer? Saudi Arabia, right? No, wrong, there's a new number one. Saudi Arabia has been knocked off its perch by the United States. According to the latest report from Bank of America, US production of crude oil and liquids separated from natural gas has surpassed all other countries this year with daily output reaching 11 million barrels and America has for four years now been the largest single producer of natural gas. Energy-wise, it seems Uncle Sam is sitting pretty but how has this all come about? Michael Widmer is a commodity strategist at Bank of America.
There's been a development that has been in the making for quite a while but it basically comes back down to the revolution in the shale oil industry that kicked off a few years back and oil producers in the States basically tapping sort of wealth that had previously or not been tapped.
So this is all down to fracking then.
It is, indeed.
I would imagine this is really something akin to the holy grail as far as the United States is concerned, both politically and economically. You see, it is actually quite an interesting development.
