In a surprising shift that is reshaping energy markets and taking dominance away from presumed energy-rich nations, the U.S. is overtaking Russia as the world’s largest producer of oil and natural gas.
In a past post, Energy Dealers Insurance: The Future of Renewable Energy, we discussed renewable energy, but In recent years, U.S. energy output has been surging. This comeback has been fueled by shale-rock formations of oil and natural gas that was unimaginable a decade ago. According to global data found in a Wall Street Journal analysis, the U.S. is in fact on track to pass Russia as the world’s largest producer of oil and gas combined this year, if it hasn’t already.
The U.S. produced the equivalent of about 22 million barrels a day of oil, natural gas, and related fuels in July of this year, according to figures from the EIA and the International Energy Agency. Neither agency has data for Russia’s gas output this year, however Moscow’s forecast for 2013 oil-and-gas productions works out to about 21.8 million barrels a day.
Last year, the United States tapped more natural gas than Russia for the first time since 1982, according to data from the International Energy Agency. Russia forecasts that its gas production will show a slight increase in the coming years, but its forecase for this year is below current U.S. production.
With all of this in mind, it’s safe to assume that business for oil and gas energy dealers will be booming, highlighting the importance of attaining energy insurance coverage, which will protect your business from risks of financial loss. Businesses that will benefit from energy insurance are those that work in oil and gas, power and utility, or alternative energy.
At Sinclair Risk & Financial Management, we offer a customized, comprehensive risk management and insurance program for Energy Dealers to protect business from risks and loss. We have a deep understanding of the underlying economics and operating requirements of a commercial company, as well as a company in a specialty industry. Contact us today at 877.602.2305 for more information.