The US Achieves Energy Independence, Becomes Net Oil Exporter For First Time

As we previewed last month using estimates from Bank of America, today the Energy Information Administration (EIA) officially confirmed that the United States became a net exporter of crude and refined products for the first time last week. This marks a departure from American dependence on foreign oil which the U.S. has relied upon for more than 75 years. According to U.S. data, crude shipments reached a record 3.2 million barrels last week with net exports turning just positive.

As a result of the boom in shale production, OPEC has seen its influence decline, putting to bed its decades-long reign as one of the globe’s massive geopolitical forces, and a key factor behind the petrodollar. The news comes just as OPEC is meeting in Vienna to agree on potential output cuts in order to support the price of oil.

Michael Lynch, president of Strategic Energy & Economic Research, told Bloomberg that the US is “becoming the dominant energy power in the world. But, because the change is gradual over time, I don’t think it’s going to cause a huge revolution, but you do have to think that OPEC is going to have to take that into account when they think about cutting”…

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