The U.S. may challenge Saudi Arabia and Russia in the next two years in the race to become the world’s largest oil producer, Bloomberg reports.
U.S. output will rise to 10 million barrels a day as soon as next month and top 11 million in November 2019, according to government forecasts Tuesday. That compares with almost 11 million barrels of Russian production in 2017 and Bloomberg estimates of just below 10 million from Saudi Arabia in December. Both countries have pledged to limit output this year to curb supply and boost prices, though the kingdom has indicated it could pump another 2 million.
The growth of North American shale production, which caused an estimated 5% increase in U.S. crude production in 2017, has rocked the oil industry in the past few years, spurring OPEC and other traditional producers led by Saudi Arabia and Russia to cut output to trim global inventories. Both Russia and Saudi Arabia have however, demonstrated an ability to give the U.S. a run for its money once the OPEC/non-OPEC output cut agreement expires.