U.S. Oil Boom reshapes markets around the world.
The American oil boom has put European refineries out of business, while undercutting West Africa crude suppliers. As well, domestic drilling is challenging producers in the Middle East and South America.
Over the past five years, the U.S. went from depending on fuel from Europe to being an exporter to the region. According to the U.S. Energy Information Administration, Nigeria ships fewer than three supertankers of crude each month, where in the recent past it numbered closer to a dozen. The West Coast will soon cut back on imports of oil from Saudi Arabia and Venezuela, replacing it with cheaper oil from the Rocky Mountains where output has grown by 31 percent since 2011.
With North American exports of gasoline and other refined products hitting a record last month, the U.S. is on pace to become the world’s largest oil producer by 2015. Drilling in the Permian Basin in West Texas and the oil-rich Bakken shale, which stretches from North Dakota into Montana and Canada, has led the boom. Texas, pumping more than Iran, has more than doubled its crude output since 2011, along with North Dakota.
Warning: Industrial challenges ahead
Growing North American production will help the United States begin to meet its own energy demands, leading it to cut back on imports that will instead flow to emerging markets. This will inevitably lead to the shifting of the economic and political realities of the World as a whole.
K & L Clutch and Transmission stands to assist in the industrial challenges that are equally inevitable, as new technologies and proven technologies are applied together to meet the challenges that present themselves, both domestically and abroad.