US set to overtake Saudi Arabia as World’s No. 2 oil producer

The International Energy Agency (IEA) has said that the United States is set to overtake Saudi Arabia as the world’s number two oil producer this year, as shale companies, attracted by rising prices, ramp up drilling,

According Financial Express reports,“This year promises to be a record-setting one for the US,” the IEA wrote in its monthly market report. Crude production of 9.9 million barrels per day (bpd) in the US was now at the highest level in nearly 50 years, “putting it neck-and-neck with Saudi Arabia, the world’s second largest crude producer after Russia,” the IEA said.

“Relentless growth should see the US hit historic highs above 10 million bpd, overtaking Saudi Arabia and rivalling Russia during the course of 2018 — provided OPEC/non-OPEC restraints remain in place,” it said. At $70 per barrel after OPEC/non-OPEC countries extended their deal until the end of this year, rising oil prices make it more attractive for shale companies to increase drilling, meaning shale production can continue uninhibited.