This blog has spent a considerable amount of time discussing the United State's increasing oilfield production numbers and how they might benefit the domestic economy. However, as production begins to outpace consumption, some may begin to wonder, are we producing too much oil and, if not, when do we reach that point?
The "Annual Energy Outlook 2013" report was released this week by the U.S. Energy Information Administration and the projections suggest we will soon reach a point where we are producing more oil than we are actually using. This could open the door for new export opportunities and it may allow U.S. officials to restrategize the way energy is distributed throughout the country, which are both positives. However, one fact will remain true and must be considered – the United States must find a way to store and manage that oil.
Right now, dealing with excess oil doesn't seem to be an issue. In a press release, EIA Administrator Adam Sieminski said that increased production is sparking optimism throughout the oil industry and national economy.
"EIA's updated reference case shows how evolving consumer preferences, improved technology and economic changes are pushing the nation toward more domestic energy production, greater vehicle efficiency, greater use of clean energy and reduced energy imports," Sieminski said. "This combination has markedly reduced projected energy-related carbon dioxide emissions."
Where things currently stand, any concern over excess oil is probably unnecessary, particularly because a surplus would create export opportunities, meaning increased production should be encouraged. But, if the country does in fact end up producing oil faster than it consumes it, where will the excess oil go? There are solutions in place right now, but will they be sufficient enough to manage a rapidly growing volume? This is something that should at least be considered when companies orchestrate their oilfield production strategies.
Implementing proper oilfield equipment can go a long way in helping businesses manage any volume of oil.