According to oil and gas industry veteran Blake Zimmerman, recent oil production figures offer ample reason for optimism. Indeed, in the midst of a widely-celebrated energy boom—one that has led to speculations about America’s ability to sustain long-term energy independence—CNBC shares a particularly riveting new set of statistics. The CNBC article notes that U.S. oil production has reached its highest peak in some 21 years—and that the amount of oil being produced in the U.S. is now almost even with the amount being imported. As that gap continues to grow narrower and narrower, Blake Zimmerman has released a statement to the press, commenting on the future of America’s oil production.
This is a realm in which Blake Zimmerman is a true expert. A veteran of the oil and gas industries, Zimmerman is the founding partner at NxtGen Energy, a Houston-based company that provides power and production services to many of the country’s most noteworthy energy companies.
“What a long way we have come in the last several years,” Zimmerman enthuses, in his new press statement. “This time ten years ago, we were all speculating about America’s energy scarcity, and oil and gas prices were surging. Now, we find ourselves in nearly the opposite predicament—and while none of us wish to be naïve about the nation’s energy prospects, this article certainly offers ample reason to celebrate.”
CNBC continues by noting that the surging U.S. oil production is also making itself known, “rather dramatically,” in the futures market. Here, the price spread between higher-priced international crude and domestic West Texas Intermediate is also rapidly narrowing. Gene McGillian, an analyst with Tradition Energy, is quoted as saying that the oil produced in America is “starting to show up in the spread,” another sure sign that America’s energy boom is having significant and far-ranging effects.
There are several reasons given for America’s energy boom—and one of the foremost ones is that U.S. crude, long landlocked in the center of the country, is now making its way elsewhere through new pipelines. This, along with new train transports, has enabled crude oil producers to get more of this oil to refineries than ever before.
Simultaneously, the United States is simply producing more oil. Andrew Lipow, of Lipow Oil Associates, is quoted as saying that he expects the government to announce that U.S. oil production has actually surpassed imports—an announcement that could come by the end of May.
At the same time, the Energy Information Administration has said that its Short-Term Outlook of the U.S. is that 7.1 million barrels are produced every day—a number that is expected to rise to 8.5 million barrels per day by the end of 2014. Before that time comes, the EIA expects average daily oil production in the U.S. to continue at the current rate of 7.1 million barrels per day, on average—up from 6.5 million barrels per day in 2012.
“When you consider those numbers, you really start to realize just how far we have come,” Zimmerman offers. “Moving from 6.5 million barrels per day to 7.1 is pretty staggering and a move to 8.5 million shows that the progress we are making is unlikely to stop anytime soon. America is producing more oil, and that oil is more accessible than ever before—both of which are contributing to the nation’s energy boom.” To put it another way, Lipow tells CNBC that America is “processing about 400,000 barrels per day more crude than this time last year and about 1 million barrels per day more than two years ago.”
According to the EIA, its Short-Term Outlook has increased in the lower 48 states because of continued success in major plays throughout the country, most especially in the Permian Basin. The EIA also indicates that refinery utilization has risen to 87 percent, as more and more refineries come back online from maintenance.
“There are many signs that seem to indicate a fairly permanent surge in U.S. oil production—but an interesting question to ask is why,” shares Zimmerman, in his press statement. “It is not because there is more oil here than there was before, but rather because more of that oil is accessible. Oil buried deep underground, or under the sea, is accessible to us in ways that is never was before, allowing U.S. oil producers to truly make use of this nation’s plentiful resources.”
Zimmerman says technology is what drives the U.S. oil boom. “In addition to new pipelines and train systems, it is important to note the significance of precise and efficient new drilling technologies, which have allowed oil companies to tap into those previously-unattainable resources,” he opines.
As for what all of this means, Zimmerman says there is ample reason for optimism. “Energy resources do not last forever, but America’s energy resources are more abundant than any of us previously imagined, and we are able to access them more proficiently than ever—which means America’s long-term oil prospects look more promising than at any point in recent history,” he explains.
Blake Zimmerman is a veteran of the American energy industry, and he currently serves as the founding partner at NxtGen Energy in Houston; he is an outspoken advocate of the nation’s oil and gas production industries.
Blake Zimmermanis a seasoned veteran of the natural gas and energy industries, and is the founder and owner of NxtGen Energy in Houston, Texas. Primarily working with oil and natural gas, Zimmerman and his company provide power and production solutions to E&P Companies at well sites. As a safer alternative to diesel or fossil fuels, this service saves harmful emissions from entering the environment. As a Texas A&M graduate and Gas Processors Association member Zimmerman has proven a well-respected industry professional among his community and colleagues. Continuing to grow NxtGen Energy, he hopes to help America become more environmentally friendly in its energy usage and much more independent of foreign oil and fuel.
According to oil and gas industry veteran Blake Zimmerman, recent oil production figures offer ample reason for optimism. Indeed, in the "/>