{"id":2016371,"date":"2023-08-30T04:14:02","date_gmt":"2023-08-30T08:14:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/analysis-is-brics-poised-to-dethrone-us-in-global-oil-production\/"},"modified":"2023-08-30T04:18:59","modified_gmt":"2023-08-30T08:18:59","slug":"analysis-is-brics-poised-to-dethrone-us-in-global-oil-production","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/analysis-is-brics-poised-to-dethrone-us-in-global-oil-production\/","title":{"rendered":"Will BRICS surpass the US in global oil production?"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fanalysis-is-brics-poised-to-dethrone-us-in-global-oil-production%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2016371&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>The Future \u2062of Global Energy Markets: BRICS and Beyond<\/h2>\n<p>After the coalition of emerging\u2063 market economies, better known as BRICS (Brazil,\u2063 Russia, India, China, and South \u200cAfrica), added six \u2063more members to the bloc, including Saudi Arabia, the debate in the summit fallout has concentrated on the future of the U.S. dollar. But what about global energy markets?<\/p>\n<p>Over\u200c the past year, BRICS nations have\u200b accelerated\u2063 their <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/brics-dropping-us-dollar-working-on-new-reserve-currency-brazils-lula\/\" title=\"BRICS ditching USD, developing fresh reserve currency: Brazil's Lula\">de-dollarization efforts<\/a> by abandoning the greenback \u2062in bilateral trade and \u200dsettling in local currencies,\u200c be it the Chinese yuan or the\u2063 Brazilian real.<\/p>\n<p>At the 15th annual\u2064 summit in Johannesburg, South Africa, officials confirmed\u200d that a working group has been established to assess the creation of a new BRICS reserve currency.<\/p>\n<blockquote>\n<h3>Related Stories<\/h3>\n<ul>\n<li><a href=\"http:\/\/www.theepochtimes.com\/opinion\/are-the-brics-a-threat-to-the-us-5481456\">Are the BRICS a Threat to the US?<\/a> (8\/28\/2023)<\/li>\n<li><a href=\"http:\/\/www.theepochtimes.com\/article\/brazils-lula-confirms-brics-dumping-us-dollar-as-bloc-expands-5480132\">BRICS Dropping US Dollar, Working on New Reserve Currency: Brazil&#8217;s Lula<\/a> (8\/24\/2023)<\/li>\n<\/ul>\n<\/blockquote>\n<p>In the meantime, the group plans to \u200crely more on national currencies.<\/p>\n<p>With the buck \u200daccounting for most international trade, experts concur that dethroning \u2062the \u2064king dollar will be a slow \u200bprocess. The same sentiment might not be accurate for worldwide crude oil \u2062production.<\/p>\n<p>Overnight, BRICS transformed into \u2063an energy powerhouse with the\u2063 addition of three major\u2063 oil producers.<\/p>\n<p>It is <a href=\"https:\/\/www.visualcapitalist.com\/visualizing-the-brics-expansion-in-4-charts\/\" target=\"_blank\" rel=\"noopener\">projected<\/a> that the coalition&#8217;s share of global crude production \u200cwill reach 43 percent,\u200b driven \u200dprimarily by Saudi Arabia (12.9 percent), Russia (11.9 percent), the United Arab Emirates (4.3 percent), and Iran (4.1 percent).<\/p>\n<p>The organization \u2064will \u2063also control\u200c a vast portion of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-chair-putin-not-primary-reason-for-high-inflation-then-biden-whines-again-about-putins-price-hike\/\" title=\"Fed Chair: Putin Not Primary Reason For High Inflation. Then Biden Whines Again About \u2018Putin\u2019s Price Hike\u2019\">global oil reserves<\/a>.<\/p>\n<p>It is estimated that the reformed BRICS will possess approximately 700 \u2063billion barrels \u200cof crude stockpiles, led by Saudi Arabia (297.5 billion barrels), Iran (157.8 billion barrels), Russia (107.8 billion barrels), and the UAE (97.8 billion barrels).<\/p>\n<p>During\u200b the summit, South African President Cyril Ramaphosa confirmed that BRICS will be looking at \u200cexpanding its partnership, which market observers say could include Venezuela.<\/p>\n<p>Should Caracas\u200b join the mix, the entity&#8217;s control of international oil supplies could top 65 percent.<\/p>\n<p>By comparison, the Group of Seven \u200b(G7) economies control\u2063 about 4 percent of proven reserves.<\/p>\n<p>Geopolitical \u2063experts have purported that the BRICS expansion is a big strategic success for China and India since they are the world\u2019s largest oil importers.<\/p>\n<p>New Delhi imports more than\u2064 80 percent of its energy needs, while Beijing&#8217;s crude \u200bimports climbed 12 percent year-over-year \u200din the first seven\u2064 months of the \u2064year.<\/p>\n<p>Others do not believe this\u2064 will seriously alter \u2063current conditions in international oil energy markets, especially\u2064 since many of the new members are a\u200b part of the Organization of \u2063the\u200d Petroleum Exporting Countries (OPEC).<\/p>\n<p>\u201cI don\u2019t think \u200bthis has implications on oil production since the three new members with meaningful\u200d oil production are\u200b already members\u2062 of OPEC, which will supersede BRICS in matters of\u200c oil output,\u201d Matt Sallee, the\u2063 president of Tortoise Energy Infrastructure Corp., told The Epoch Times.<\/p>\n<p>At the same time, the de-dollarization campaign and the state of energy markets could \u200ccollide.<\/p>\n<p>Since more countries are engaging in non-dollar bilateral trade,\u2062 some experts wonder if BRICS nations and BRICS+ allies could eventually request that the\u200d United States\u2062 and Europe settle oil trades in local currencies, like the UAE dirham or Saudi riyal.<\/p>\n<p>Such a move, political observers\u200d argue, could \u200bresult in \u200ba paradigm shift since the\u200b greenback \u200chas \u200caccounted for about 80 percent of crude oil transactions over the \u2064past\u200c few decades.<\/p>\n<h2>State of American Energy<\/h2>\n<p>Meanwhile, the U.S. maintains approximately 44.4 billion barrels in\u200c proven oil \u200breserves, excluding the Strategic Petroleum Reserve, which stands north of 300 million barrels.<\/p>\n<p>In addition,\u200b for nearly all of 2023, daily output has \u200cbeen flat,\u2063 ranging between 12.2 million barrels per day (bpd) and 12.4 million bpd.<\/p>\n<p>On a global basis,\u2062 <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/analysis-is-brics-poised-to-dethrone-us-in-global-oil-production\/\" title=\"Will BRICS surpass the US in global oil production?\">proven worldwide oil reserves stand<\/a> at\u200d about 1.65 trillion barrels, and daily output is roughly\u2062 100 million bpd.<\/p>\n<p>&#8220;The BRICS\u2062 conference shows\u200d that in some ways it\u2019s a new bloc that could challenge\u200c the United States for energy \u2062security,&#8221; <a href=\"https:\/\/blog.pricegroup.com\/2023\/08\/24\/the-diesel-gap-the-energy-report-08-24-2023\/\" target=\"_blank\" rel=\"noopener\">wrote<\/a> Phil Flynn, the senior market analyst \u200dat PRICE Group Futures, in a note.<\/p>\n<p>Indeed, there has been widespread concern that domestic output could be slowing heading into 2024. Despite a\u2063 barrel of West Texas Intermediate (WTI) trading in the \u2062$80 \u200brange, production \u2062growth has been\u2063 flat for most\u200b of 2023 and below-trend \u200bcompared\u2064 to before the coronavirus pandemic.<\/p>\n<p>According to the <a href=\"https:\/\/tradingeconomics.com\/united-states\/crude-oil-rigs\" target=\"_blank\" rel=\"noopener\">Baker Hughes Oil Rig Count<\/a>, the number \u2063of\u200b active drilling rigs fell to 512 for the week ending \u2063on Aug. 25, down from 520 in the previous\u200c week. This measurement has\u200d failed to recover to levels\u200d seen before the\u2064 COVID-19 public health crisis and stands at the lowest reading since \u200bFeb. 2020.<\/p>\n<p>Enverus Intelligence Research (EIR) \u200brecently published a <a href=\"https:\/\/www.enverus.com\/newsroom\/eir-density-drives-steepeningdeclines-in-u-s-shale\/#:~:text=%E2%80%9CThe%20U.S.%20shale%20industry%20has,and%20managing%20director%20at%20EIR.\" target=\"_blank\" rel=\"noopener\">report<\/a> that warned\u2063 production\u200c growth will be &#8220;more\u2062 difficult than it was\u2064 in the past.&#8221;<\/p>\n<p>&#8220;The U.S. shale industry has been\u2062 massively successful, roughly doubling the production out of the average\u200d oil well over the last \u2062decade, but that trend has\u2062 slowed in \u2062recent years,\u201d said Dane\u200b Gregoris, report author and managing director\u2064 at EIR.<\/p>\n<p>\u201cIn addition, we\u2019ve observed that declines\u2062 curves, \u200cmeaning \u2063the rate at which production falls over time, are getting steeper as well density increases. Summed \u2062up, the\u200b industry\u2019s treadmill is \u2063speeding up and this will\u2064 make\u2062 production growth more difficult than it was in the past.&#8221;<\/p>\n<p>The \u200dEnergy Information Administration (EIA) warned earlier this month that crude oil and natural gas \u200boutput from top shale-producing regions is poised to slide in September for \u2064the second consecutive month to the lowest levels since May.<\/p>\n<p>EIA <a href=\"https:\/\/www.eia.gov\/outlooks\/steo\/index.php\" target=\"_blank\" rel=\"noopener\">data<\/a> \u200b suggest that shale oil production in top-producing areas, including in the Permian Basin and South\u200c Texas Eagle Ford, will drop to \u20639.41 million bpd next month.<\/p>\n<p>It is not only the United \u200cStates that may witness a trim in production \u200cin \u2063certain\u2063 areas. Saudi Arabia, Russia, and OPEC members have \u200beased outp<\/p>\n","protected":false},"excerpt":{"rendered":"<p>expanded their cooperation in the energy sector. With the addition of six new members, including Saudi Arabia, the focus has shifted to the future of the U.S. dollar. However, the discussion should also consider the impact on global energy markets. BRICS nations have been strengthening their energy collaboration over the past year.<\/p>\n","protected":false},"author":278,"featured_media":2016372,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2016371","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2016371","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/278"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2016371"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2016371\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2016372"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2016371"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2016371"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2016371"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}