By Marc Chandler, Global Head of Currency Strategy, Brown Brothers Harriman
This Great Graphic comes from Mark Perry’s Carp Diem blog, which I saw on the American Enterprise Institute website. It shows that last November, the US oil production surpassed Saudi Arabia for the first time in almost a decade.
Perry notes that the Energy Information Administration says that last year the Saudi Arabia’s was the largest producer and export of petroleum and other liquids. at 11.6 mln barrels per day. It estimated US output at 11 mln barrels per day., putting it in second place for the year.
Of course there is much fluctuation on a month to month basis and but this coupled with what we noted earlier (record US petroleum exports in December) is a sign of things to come. The financial crisis may or may not be a game changer in terms of of the global political economy, the cheap energy story in the US is a game changer and the full ramifications are still being contemplated.