Record oil and gas drilling in the U.S. has made it the world’s largest producer of the two energy sources combined in 2014, according to BP Plc’s Statistical Review of World Energy, overtaking Russia. The report, released Wednesday, also confirmed that increased U.S. production has caused energy prices to fall across the world.
While U.S. production is soaring, China – the world’s fastest growing economy in the past two decades – is slowing in their energy consumption to the lowest rate of growth in that sector since the late 1990’s.
BP’s chief economist Spencer Dale commented that, “Growth in some of China’s most energy-intensive sectors…virtually collapsed in 2014.”
To be fair however, China’s increased it’s consumption of crude oil by 390,000 barrels per day in 2o14, nominally more than any other country the world.
Conversely, the U.S. has been decreasing it’s dependence on foreign oil in recent years, as it now only accounts for 1% of total GDP, compared to 2.5% in 2007. The U.S. produced 90% of the fuel it consumed in 2014.
U.S. crude oil production even outpaced Saudi Arabia last year, a mantle that’s been passed back and forth between those countries and Russia since at least 1980. The U.S. has been the world’s largest producer of natural gas since 2010.
[Bloomberg] [Institute for Energy Research]