America has had the largest oil industry in the world for decades. At the current time, professionals say the country produces 13,000 barrels per day. That number is expected to jump to millions in the coming four years. We wanted to find out how strong the industry has become. We also wanted to learn about the main threats to the marketplace. On top of everything else, the information on this page will aim to show you what might happen in the future. One thing’s for certain; the oil giants are not going to give up without a fight. They have far too much invested in the energy producing material.
Why is the oil industry so strong in the US?
Firstly, it’s important we understand how the industry got to be so large. Apart from anything else, American citizens are sitting on oceans of oil. There are so many different pockets in the land we call home that it would be impossible to excavate it all. When oil production first started to boom in the late 1800s, America was on the front line. The country was doing well at the time, and so there were mountains of cash to pay for the investment. Pretty soon, the government realized the oil industry was supporting the nation. That led to them undertaking many wars to gain access to the global supply. That is why the oil industry is so strong in the US.
Which state produces the most oil?
There are many oil producing states in the US. At the current time, North Dakota seems to be doing very well. Click here to find out more about how growth in the oil industry has caused issues for many residents. The Bakken formation in North Dakota has produced oil since 1953. However, it is only during the last two decades that all the oil reserves were available. Before that, the government had decided that companies were only allowed to drill in certain designated areas. Advances in technology have meant that oil excavators are now allowed to drill in more locations. That might not be the best news for people who live in the state. Even so, it’s a fantastic revelation for those making a profit from oil.
What is the biggest threat to the oil industry today?
Unstable regimes in the Middle East are certainly not the best thing for oil companies. However, they don’t present the biggest threat. It is those living in the western world that is causing the most significant problems for oil barons. Global warming has made most people aware of their energy usage. Indeed, many people are now pushing for renewable. Solar panels could provide more than enough power for the entire planet. Oil companies are doing everything within their power to ensure the technology does not become commonplace. However, it would seem their efforts are in vain.
Can we expect to see massive changes to the industry in the coming years? Almost certainly. There is no getting around the fact that oil companies will have to make increased investments in renewable if they want to survive. That goes part of the way to explaining why they have been buying up all the firms promoting green energy.