As a comprehensive provider of services to major oil and gas producers found throughout the United States of America, Stag Energy Services is committed to encouraging the growth of national energy on several levels. While Americans have celebrated the direct benefits of recent boons of oil drilling and fracking—such as greater job creation, introduction of new wealth and new opportunities for energy independence—Stag Energy believes that the recent attention on exporting these fuel resources could offer even greater economic potential to the nation.
A recent article from Bloomberg highlights how the newfound concentration on oil exports has many in the industry experiencing a chance for growth. In fact, the article explains that if US Congress does decide to move greater attention to exporting resources, it would be the first effort regarding this strategic economic activity to take place since the 1970s. The article observes, “The U.S. oil boom is moving Congress closer than it has been in more than three decades to easing the ban on exporting crude imposed after the Arab embargo…Advances such as hydraulic fracturing are leading to record production that may outstrip refinery capacity within 18 months to three years, said Benjamin Salisbury, a senior energy policy analyst at FBR Capital Markets Corp. in Arlington, Virginia. Net petroleum imports now account for about 40 percent of demand, down from 60 percent in 2005, according to the U.S. Energy Information Administration, the Energy Department research unit.”
In a recent press statement, Stag Energy Services responds, “With less demand for importing energy resources, it is clear that America is in an exceptional position to begin exporting. However, since this topic has not been truly addressed or strategized since the Arab embargo in the 70s, any potential discussions must be approached with caution so that all oil producers can reformulate their strategies.” In regards to the significance of the newfound oil export focus, the Bloomberg article adds, “Congress has limited oil exports since the 1973-74 Arab oil embargo triggered shortages that pushed up prices and led to long lines at gas stations. An increase in domestic production last year by a record 766,000 barrels a day is challenging a notion that Americans need foreign oil, while setting up a debate policy makers may be reluctant to begin.”
Although Bloomberg recognizes that the US is approved—under a Commerce Department licensure—to send approximately 120,000 barrels of crude each day to Canada, Stag Energy explains that more attention on developing an export economy will require massive infrastructure changes on behalf of all corporate entities involved in the oil and gas industry. Even if export procedures do not expand soon, the US will have to answer many rising concerns on the increased rate of domestic oil production and its current strain on resources.
In fact, the Energy Department—according to Bloomberg—has estimated that America’s oil output is on track to surpass Saudi Arabia “as the world’s largest producer by 2020.” For Stag Energy, that deadline is approaching more quickly than it may seem, which is why Congress, political parties and members of the energy industry need to stay focused on redesigning for export opportunities.
Sharing a similar sentiment, Robin West—chairman of the oil consulting firm PFC Energy—explains in the Bloomberg report, “Exports must expand to sustain the boom that increased U.S. production last year by the most since the first commercial well was drilled in 1859…It’s a fairly short period of time, it’s a couple of years, before we effectively hit the wall…That will start affecting price, which in turn will start affecting production.”
Furthermore, the Bloomberg article cites additional concern from Charles Drevna—president of the American Fuel & Petrochemical Manufacturers—who states, “Refiners agree they need to educate policy makers on the issues related to limited capacity as U.S. production nears that of Saudi Arabia, the largest producer in the Organization of Petroleum Exporting Countries.” While this growth can lead to many exciting developments for the nation’s energy economy, Stag Energy Services believes that manufacturers need to start preparing for a possible shift toward greater crude exports.
For example, Bloomberg observes, “Since 2007, oil imports have fallen, with heavier crude taking up a larger share as domestic production of light oil from Texas and North Dakota has increased, according to Energy Department data. U.S. refineries designed to process heavy oil run less efficiently when handling light crude.” As such, the Energy Information Administration observes that to process more light crude “refiners would need to readjust refinery crude runs, revamp refinery equipment to run a higher percent of light crude, or reduce the use of heavy crude upgrading equipment, which may have adverse impacts on operations.”
“There are so many changes that are bound to happen in terms of how the country can refresh its operations to handle greater output and export of light crude. Studies have shown that light crude can prove much more profitable to the US to export than what current runs provide. However, the oil industry must be willing to expend resources for improvement first before the United States can handle such a strong output. While there has yet to be an official addendum to America’s exporting regulations, Stag Energy is prepared to assist all domestic producers to make these changes with quality solutions that can improve efficiency and productivity,” Stag Energy Services concludes in its press statement.
Stag Energy Services is a company that seeks to provide a comprehensive array of solutions to oil companies throughout the United States. With a dedication to creating success, this company has developed a client list that includes some of the most prestigious and prolific oil organizations in the entire United States. The company is led by Operations Manager James Mann, and benefits from his years of natural gas and oil experience. The firm is devoted to the highest standards of quality and of service in all of its offerings, which include site construction, equipment rental and repair, well maintenance, the provision of trained contract personnel, and more.