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US oil output soaring on shale boom

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(Globalpost/GlobalPost)

The United States enjoyed a record surge in oil and gas production last year, boosted by a shale energy revolution, British energy giant BP said on Wednesday.

"On the supply side, the most noticeable phenomenon remains the American shale revolution," said BP Chief Executive Bob Dudley in an introduction to the group's global outlook report.

"In 2012, the US recorded the largest oil and natural gas production increases in the world, and saw the largest gain in oil production in its history."

American oil output increased by 1.0 million barrels per day (bpd) last year, which helped it slash net oil imports by 930,000 bpd, BP added in its Statistical Review of World Energy 2013.

At the same time, gas output in the United States jumped by 4.7 percent to record the largest increase and retain its place as the world's top gas producer.

BP added Wednesday that world energy consumption growth eased to 1.8 percent in 2012, down from 2.4 percent the previous year, as demand was hit by the global economic slowdown and increased efficiency.

"The year 2012 saw a slowdown in the growth of energy consumption globally, partly as a result of the economic slowdown but also because individuals and businesses have responded to high prices by becoming more efficient in their use of energy," added Dudley.

"At the same time, the review shows that the supply of energy is coming from an increasing diversity of sources as the world's energy market continues to adapt, innovate and evolve."

BP said emerging economies established themselves as the main source of energy demand growth, with China and India alone accounting for almost 90 percent of the increase.

"Just twenty years ago, the emerging economies accounted for only 42 percent of global consumption; now that figure is 56 percent."

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http://www.globalpost.com/dispatch/news/afp/130612/us-oil-output-soaring-shale-boom