The US has overtaken Russia as the world’s largest oil and natural gas producer, as US oil production rose to record levels, according to BP’s Statistical Review of World Energy report.
Commenting on a rise in daily US oil production of 1.6 million barrels per day in the last year, BP chief economist Spencer Dale said: “We are truly witnessing a changing of the guard of global energy suppliers the implications of the shale revolution for the US are profound.”
The effects of the shale boom on the economy have been significant as the country produced 90% of the energy that it consumed in the last year.
In addition according to BP’s data, imports of energy equated to 1% of GDP compared to half of the 5% account deficit of GDP prior to the financial crisis in 2007 and onset of the shale boom.
The shale industry invested and spent around $120 billion, which is more than double from the turn of the decade and despite slashing the number of operations in the wake of an oil price crash, production has continued to climb into 2015.
BP chief executive officer Bob Dudley forecast that the lowered oil and gas prices will mean that some producers look to shut in “frothy activity” at their operations but added that most projects are operational at current prices.
Dudley suggested that the number of US shale rigs will stabilise by the end of the summer.
“The shale revolution hasn’t run out of steam in the US,” he asserted.
To demonstrate the magnitude of the growth in the shale industry, BP said that the increase in US oil output is the first time that a country has raised production by over 1 million barrels per day for three consecutive years.