Trump official touts fracking technology as a global policy game changer.
- Total LNG export had by the end of calendar year 2017 quadrupled to 1.94 billion cubic feet per day (Bcf/d) from 5 Bcf/d at the end of 2016.
- In 2017 the U.S. produced 14.46 million gallons of oil per day. The second largest producer, Saudi Arabia, in the same period produced 12.08 million barrels per day.
- Former President Barak Obama in his second term removed a 40-year ban on crude oil exports, opening the door for the current energy boom.
Innovation in the oil and gas industry has led to a U.S. energy renaissance that is impacting the world stage, U.S. Energy Secretary Rick Perry told a room full of infrastructure experts in Dallas.
“We are not just exporting a natural resource,” Perry said while speaking at CG/LA Infrastructure’s 10th annual North American Infrastructure Leadership Forum. “When you are seeing American liquefied natural gas going into Eastern Europe, we are exporting freedom,” he said.
U.S. liquefied natural gas exports have surged since initial policies for export were put in place by President Obama in 2016. According to the U.S. Energy Information Administration, total LNG export had by the end of calendar year 2017 quadrupled to 1.94 billion cubic feet per day (Bcf/d) from 0.5 Bcf/d at the end of 2016.
“The geo-politics of the world have been turned on its head because of American innovation and American technology,” Perry said.
Perry credited the energy boom to improvements in hydraulic fracturing, or fracking. Notably, additional technological advances such as horizontal drilling and enhanced oil recovery have also re-energized the vast Permian Basin shale oilfield in West Texas and southeastern New Mexico where drillers are able to extract a lower break-even price than they were years ago.
“The geo-politics of the world have been turned on its head because of American innovation and American technology,” U.S. Energy Secretary Rick Perry
Last year, the United States was the top oil producer in the world. The US Energy Information Administration (EIA) reports that in 2017 the nation produced 14.46 million gallons of oil per day. The second largest producer, Saudi Arabia, in the same period produced 12.08 million barrels per day.
Production in the Permian Basin is expected to double from 2017 to 2023, according to IHS Markit. Perry said that there remains a need for additional pipeline infrastructure in order to allow energy companies to get the oil to market.
“We [still] have work to do delivering that infrastructure in the Permian Basin.”
The secretary, despite his support for fracking, noted that the nation’s energy infrastructure extends beyond oil and gas to include wind, solar, hydroelectricity and nuclear power. Perry at the same time cautioned that the U.S. needs to be sure it can protect this from the increasing threat of cybersecurity attacks.
“America’s national security is inextricably intertwined with our ability to develop and deliver our natural resources to the world with no strings attached.”