Jan 10, 2018

The growing U.S. clout in oil markets

A large fracking operation in Loveland, Colorado. Photo: Helen H. Richardson/The Denver Post via Getty Images

U.S. crude oil production is expected to surpass 11 million barrels per day late next year, the Energy Information Administration says in its short-term energy outlook.

Why it matters: The forecast, while consistent with rising U.S. output thanks to the shale boom, nonetheless highlights how the U.S. has again become a powerful force in global crude oil markets and a major challenge to big petro-states.

  • As CNBC points out here, the projection that U.S. oil production will average 10.8 million barrels per day next year would put the country's output on par with Russia and Saudi Arabia.

Go deeper: EIA's latest monthly outlook also boosted its 2018 U.S. production forecast to 10.3 million daily barrels. Last month EIA had projected a 2018 average of 9.9 million. Under either case, it would smash the prior annual average record of 9.6 million set in 1970.

  • EIA said most of the projected growth in coming years will come from surging shale production.
  • They see the Permian basin region in Texas and New Mexico accounting for around three quarters of the 1.2 million barrels per day of U.S. growth they see by the end of 2019.
  • Most of the rest comes from the Gulf of Mexico, where a slew of projects are coming online.

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In photos: How coronavirus is impacting cities around the world

Revellers take part in the "Plague Doctors Procession" in Venice on Tuesday night during the usual period of the Carnival festivities, most of which have been cancelled following the coronavirus outbreak in northern Italy. Photo: Andrea Pattaro/AFP via Getty Images

The novel coronavirus has spread from China to infect people in more than 40 countries and territories around the world, killing over 2,700 people.

The big picture: Most of the 80,000 COVID-19 infections have occurred in mainland China. But cases are starting to surge elsewhere. By Wednesday morning, the worst affected countries outside China were South Korea (1,146), where a U.S. soldier tested positive to the virus, Italy (332), Japan (170), Iran (95) and Singapore (91). Just Tuesday, new cases were confirmed in Switzerland, Croatia and Algeria.

See photosArrow2 hours ago - World

Debate night: Candidates' last face-off before Super Tuesday

Sanders, Biden, Klobuchar and Steyer in South Carolina on Feb. 25. Photo: Jim Watson/AFP via Getty Images

Sen. Bernie Sanders wanted to keep his momentum after winning contests in New Hampshire and Nevada, while former Vice President Joe Biden hoped to keep his own campaign alive. The other five candidates were just trying to hang on.

What's happening: Seven contenders for the Democratic presidential nomination were in Charleston, South Carolina, for the tenth debate, just days before the South Carolina primary and a week before Super Tuesday. They spoke, sometimes over each other, about health care, Russian interference in the election, foreign policy the economy, gun control, marijuana, education, and race.

Go deeperArrowUpdated 5 hours ago - Politics & Policy

4 takeaways from the South Carolina debate

Former Vice President Joe Biden, right, makes a point during Tuesday's Democratic presidential debate, while Vermont Sen. Bernie Sanders listens. Photo: Win McNamee/Getty Images

The 10th Democratic debate was billed as the most consequential of the primary thus far, but Tuesday night's high-stakes affair was at times awkward and unfocused as moderators struggled to rein in candidates desperate to make one last splash before Saturday's primary in South Carolina and Super Tuesday.

The big picture: After cementing himself as the Democratic favorite with a sweeping win in Nevada, Sen. Bernie Sanders came under fire as the front-runner for the first time on the debate stage. Former New York Mayor Michael Bloomberg, who will be on the ballot for the first time next Tuesday, was a progressive foil once again, but he appeared more prepared after taking a drubbing at the Nevada debate.