Transcript The Incredible Impact of US Oil and Gas

THE INCREDIBLE IMPACT
of U.S. Oil and Gas Production
Presented by:
ENERGY IS BOOMING IN AMERICA

According to the
International Energy
Agency, U.S. oil
production rose by a
record 992,000
barrels a day in
2013 to 7.5 million
barrels per day.

This is the highest
U.S. oil production
level since 1989.
Source: Fuel Fix
ENERGY IS BOOMING IN AMERICA

Natural gas is fueling a
manufacturing boom in the
U.S., producing tens of billions
of dollars in new plant and
equipment investment and
bringing tens of thousands of
well-paying jobs back from
overseas.

IHS estimates that by 2025,
as much as $100 billion will
be invested in new
manufacturing facilities in the
U.S.
TOP 10 OIL PRODUCING STATES
1.
2.
3.
4.
5.
Texas – 83,919*
North Dakota – 29,191
California – 16,286
Alaska – 16,070
Oklahoma – 9,753
*Thousand barrels
6.
7.
8.
9.
10.
New Mexico – 8,310
Louisiana – 5,818
Wyoming – 5,433
Colorado – 5,350
Kansas – 3,728
TOP 10 NATURAL GAS PRODUCING STATES
1.
2.
3.
4.
5.
Texas – 7,475,495*
Louisiana – 2,955,437
Pennsylvania –
2,256,696
Oklahoma –
2,023,461
Wyoming – 2,022,275
*Million cu foot
6.
7.
8.
9.
10.
Colorado – 1,709,376
New Mexico –
1,215,773
Arkansas – 1,146,168
West Virginia –
539,860
Utah – 490,393
“SAUDI TEXAS”

36% of U.S. oil production comes
from Texas.

Texas’ daily output of oil has
doubled in the last 29 months.

As of March 7, Texas accounts for
over 1 in 2 of all oil rigs in the U.S.
and almost 1 in 4 for every rig
around the world.
1 in 20 of the world’s oil
rigs are in the Eagle Ford
1 in 4 of the world’s
oil rigs are in Texas
1 in 10 of the
world’s oil rigs are in
the Permian Basin
IF TEXAS WERE A SEPARATE COUNTRY…
1.
2.
3.
4.
5.
United States
Saudi Arabia
Russia
China
Canada
6.
7.
8.
9.
10.
Iran
United Arab Emirates
Iraq
Brazil
Mexico
…it would be the No. 9 producer of oil in the world. Texas is
on pace to surpass Iran, Iraq and the United Arab Emirates
to become the sixth-largest oil producing nation by 2015.
ECONOMIC IMPACT OF OIL & GAS

According to a 2013 report
from IHS, unconventional oil
& gas production directly
supported more than 2.1
million American jobs in
2012.

IHS predicts this figure will
grow to 3.3 million jobs by
2020.
Source: IHS Model of the U.S. Economy
ECONOMIC IMPACT OF OIL & GAS

In 2012, unconventional oil & gas production
contributed nearly $75 billion in federal and state
tax revenues and $283 billion to the U.S. gross
domestic product (GDP).

IHS projects these figures to double by 2020 to more
than $125 billion in federal and state tax revenues,
and more than $468 billion in annual contributions
to GDP.
ECONOMIC IMPACT OF OIL & GAS

In 2012, average real
disposable income per
household increased by
more than $1,200 as a
result of oil and gas
development.

By 2020, average
household savings will grow
to $2,700 annually and
more than $3,500 by 2025.
ECONOMIC IMPACT OF OIL & GAS

Between 2012 and 2025, IHS estimates that capital
expenditures for the upstream industry will reach
over $2.4 trillion.

At the same time, midstream and downstream
energy will generate over $216 billion and energyrelated chemicals will add more than $129 billion.
THE FUTURE OF U.S. OIL AND GAS

Natural gas production is expected to increase 56%
between 2012 and 2040 to 37.6 trillion cubic feet
(Tcf).

Natural gas is expected to overtake coal as the
largest share of U.S. electric power generation by
2040.
THE FUTURE OF U.S. OIL AND GAS

The U.S. Energy Information Administration (EIA) has
predicted that U.S. crude oil production will increase
to 8.5 million barrels per day in 2014 and 9.3 million
barrels per day in 2015.

The 2015 forecast would mark the highest annual
average level of production for the U.S. since 1972.
TOP 10 OIL PRODUCING NATIONS
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Saudi Arabia
United States
Russia
China
Canada
Iran
United Arab Emirates
Iraq
Brazil
Mexico
2012, U.S. Energy Information Administration
AN ENERGY INDEPENDENT NATION?

The U.S. Commerce Department recently reported that
U.S. monthly trade deficit has reached a four-year low due
to a $2.5 billion drop in imported oil, made possible by the
domestic oil boom.

Crude imports were down by almost $40 billion during the
first 11 months of 2013.

By 2020, the shale boom is expected to lower the trade
deficit by one-third as energy imports continue to decline.

This has led some to predict that North America could be
energy independent by 2020 and spurred conversations
on whether the U.S. should lift its export ban on oil.
AN ENERGY INDEPENDENT NATION?
“Seventy percent of the shales in the world were drilled in
the United States. The potential of the oil and gas industry
is vast. We can become energy independent.”
–Mike Flores, CPL, AAPL Meet Us Campaign
THE WORLD’S LEADER IN OIL & GAS?
According to the EIA, the United States will likely
become the world’s largest producer of petroleum
and natural gas hydrocarbons in 2013, surpassing
Russia and Saudi Arabia.
THE WORLD’S LEADER IN OIL & GAS?


Since 2008, U.S.
petroleum production
has increased 7
quadrillion Btu.
Natural gas
production
has increased by 3
quadrillion Btu.
Source: U.S. Energy Information Administration
In comparison, Russia and Saudi Arabia each
increased their combined hydrocarbon output by only
1 quadrillion Btu during the same time frame.
QUESTIONS