The American oil boom is rewriting the history books.
Daily oil production in the United States surged by a massive 2.2 million barrels in 2018. That’s the “largest ever annual increase by a single country,” according to BP’s annual statistical review of world energy that was released on Tuesday.
Those gains, made possible by the Permian Basin of West Texas, accounted for nearly all of the planet’s production growth.
US production has spiked by more than 7 million barrels per day since 2012 — “an astonishing increase” that BP said is equivalent to Saudi Arabia’s oil exports.
Meanwhile, the United States is less reliant on foreign oil. BP said that US net oil imports (after accounting for exports) have shrunk to less than 3 million barrels per day, compared with more than 12 million in 2005.
All of that American oil is keeping a lid on prices — despite US sanctions on Venezuela and Iran. US oil prices plunged into a bear market last week.
Goldman Sachs predicted on Wednesday that strong Permian Basin production will keep Brent crude, the global benchmark, around $65 a barrel in the third quarter. Brent fell 2% on Wednesday to $61.