Chart #1: US Oil Production
Domestic crude oil production increased 1.0 million bbl/d—rising more than the combined increases in the rest of the world—to reach its highest level in 24 years. This increase marked the largest observed annual increase in U.S. history.
This year, production should continue to soar.
Read more about the latest EIA production forecasts HERE.
Chart #2: Affect of Lower Imports on US Trade Balance
Imports of oil/petroleum dropped -22.1% from last month to a $15.2 billion deficit. Petroleum related exports increased $700 million while imports decreased by -$3.6 billion. Crude oil by itself declined over -$2.5 billion in imports this month. The November trade deficit should help boost GDP as did June's plunge with Q2.
Read more on this HERE.
Chart #3: Falling Oil Imports and Rising Petroleum Product Exports
Economist Ed Yardeni believes we are experiencing or at least headed for a "fracking dividend." It's like a peace dividend. Basically, we spend less money on imported oil, so we have more to spend on our own economy.
Interestingly, over the next year, total US liquid fuel consumption met by imports will reach a 24% low, off 60% from 2005 level.
Chart #4: Prices of U.S. and International Oil Benchmarks
Meanwhile, spot the trend in prices for West Texas Intermediate, the U.S. crude oil benchmark ...
But all that new U.S. oil production is keeping the price of international oil stable. You can read more about that HERE.
Chart #5: The Big Drawdown in Natural Gas in StorageWorking gas in storage is not only below last year, it's below the 5-year average as well. And we have yet to see the big draw-down from the "Polar Vortex"