Check out the latest oil news affecting the United States, including stories about production, regulation, and more.
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Oil Prices
Oil prices are on the rise again today after a brief respite yesterday. Prices had been steadily climbing for the past few weeks but took a sharp jump today. This is good news for oil producers but bad news for consumers who are already feeling the pinch from higher gasoline prices.
WTI
West Texas Intermediate (WTI), also known as Texas light sweet, is a grade of crude oil used as a benchmark in oil pricing. This grade is described as light because of its relatively low density, and sweet because of its low sulfur content.
WTI crude is extracted from the Permian Basin in West Texas and produced at pipelines and refineries around the United States. WTI crude typically trades at a slight discount to Brent crude, which is another major global benchmark.
WTI oil prices are used as a benchmark in U.S. oil pricing but the price of WTI has also been influenced by global oil market trends.
Brent
Brent, also known as Brent Crude, is a type of crude oil that is used to price two-thirds of the world’s internationally traded crude oil supply. The Brent crude oil price today fell to its lowest level in nearly four years as weak economic data from China stoked fears about oversupply in the global market.
Brent is a major global benchmark for pricing crude oil and is used to price more than two-thirds of the world’s internationally traded crude oil supply. The Brent crude oil benchmark consists of four grades of oil — Brent Blend, Forties Blend, Oseberg Blend and Ekofisk Blend — with delivery taking place at the Sullom Voe Terminal on the Shetland Islands in Scotland.
The four grades of Brent are similar but not identical, with each having a different density and sulfur content. The most important difference between Brent and other benchmarks is that Brent includes light sweet crudes, while other indices include only heavy sour crudes.
Brent is used as a pricing benchmark for Crude Oil Future contracts traded on the Intercontinental Exchange (ICE), as well as for physical crude oil sales.
Oil Production
The United States of America is a federal republic composed of 50 states, a federal district, five major self-governing territories, and various possessions. The 48 contiguous states and Washington, D.C., are in central North America between Canada and Mexico. The state of Alaska is in the northwestern part of North America and the state of Hawaii is an archipelago in the mid-Pacific.
USA
The United States of America is one of the world’s leading oil producing countries. In 2019, it produced an estimated 18.9 million barrels per day (bpd) of oil according to the US Energy Information Administration (EIA). This was a significant increase from the 2017 production level of 14.8 million bpd. The majority of US oil production takes place in Texas, North Dakota, and Alaska.
The United States is also one of the world’s leading oil producing countries in terms of natural gas production. In 2019, it produced an estimated 25.6 trillion cubic feet (tcf) of natural gas according to the EIA. This was a significant increase from the 2017 production level of 21.3 tcf. The majority of US natural gas production takes place in Texas, Pennsylvania, and Louisiana.
Saudi Arabia
Saudi Arabia is the world’s largest oil producer, with an output of more than 10 million barrels per day. It has been a key player in the global oil market for decades, and its decisions have often had a major impact on oil prices.
Saudi Arabia is a member of the Organization of the Petroleum Exporting Countries (OPEC), and it plays a leading role in the group. OPEC is a cartel that seeksto control the supply of oil in order to keep prices high. Saudi Arabia often takes measures to support OPEC’s efforts to prop up prices.
The kingdom has also been a major supplier of oil to the United States, and it has worked closely with the US government on energy matters. In recent years, however, Saudi Arabia has reduced its exports to the US as it seeks to sell more oil to Asia.
Saudi Arabia’s vast reserves of oil have made it one of the world’s most wealthy nations, and its citizens enjoy a high standard of living. However, the country faces significant challenges, including a large youth population that is unemployed or underemployed. The country is also coping with lower oil prices and anxieties about climate change.
Russia
Russia is one of the world’s leading oil producing nations, with an average production of 10.5 million barrels per day in 2019. Russia is also one of the world’s leading oil exporting nations, with exports totaling 5.8 million barrels per day in 2019. The majority of Russia’s oil production comes from the country’s vast western Siberian fields, which hold an estimated 60% of the country’s total reserves.
Oil Companies
Crude oil prices fell today as traders reacted to news that the US government had issued a stay on new drilling leases in the Arctic. This brought some relief to investors who have been worried about a glut in supply. However, analysts say that the stay is only temporary and that the market is still oversupplied. Prices are likely to remain volatile in the near future.
ExxonMobil
ExxonMobil is an American multinational oil and gas corporation headquartered in Irving, Texas. It is the largest direct descendant of John D. Rockefeller’s Standard Oil Company, and was formed on November 30, 1999, by the merger of Exxon andMobil.
ExxonMobil’s primary business is petroleum exploration and production, as well as the transport and sale of crude oil, natural gas, and petroleum products. It also has significant interests in refining, chemical manufacturing, and energy trading. The company operates in over 100 countries and has a global workforce of over 75,000 people.
In 2018, ExxonMobil was ranked as the largest publicly traded oil and gas company in the world by market value. It was also ranked as the seventh-largest company by revenue in Fortune 500 list for 2019.
Chevron
Chevron Corporation is one of the world’s largest oil companies. It is headquartered in San Ramon, California, and active in more than 180 countries. Chevron is engaged in every aspect of the oil and gas industry, including exploration, production, refining, marketing, transportation, and power generation.
The company was founded in 1879 as the Pacific Coast Oil Company. It later became Standard Oil of California, and then Chevron Corporation. In 2017, Chevron was the second-largest oil company in the United States by revenue (after ExxonMobil), and the fifth-largest in the world by revenue.
Chevron has a long history of environmental accidents and controversies. In 2011, a Chevron oil pipeline burst in central California, spilling more than 400000 gallons (1.5 million liters) of crude oil into a ravine near Bakersfield. The spill caused significant damage to local wildlife and vegetation. In 2012, Chevron was found guilty of polluting the Amazon rainforest in Ecuador, and ordered to pay $9 billion in damages.
Shell
Shell Oil Company is the United States-based subsidiary of Royal Dutch Shell, a multinational “oil major” of Anglo-Dutch origins, which is amongst the largest oil companies in the world. Approximately 22,000 Shell employees are based in the U.S. The U.S. head office is in Houston, Texas.
Shell Oil Company owns and operates shell.com website, which provides detailed information about Shell products and services for consumers in the United States. American consumers can also learn about responsible energy use through the site’s Online Energy Guide andcan purchase Shell lubricants and motor oils for their vehicles. The site also offers information on careers with Shell in the United States.
