The recent surge in US crude oil production and exports represents a significant shift in global oil markets, challenging the traditional dominance of OPEC+ countries. This report explores the economic and geopolitical ramifications of these changes, focusing on the strategies the United States and OPEC+ employ in response to evolving market conditions in the energy sector.

Last year, US crude oil production reached a record high of 4.1 million barrels per day (bpd), underscoring the country’s increasing role as a significant oil exporter. This uptick in production and exports has enabled the United States to penetrate markets in Asia and Europe, traditionally held by OPEC+ members. The exploitation of shale reserves in areas like the Permian Basin, based in the state of Texas, have been central to American export growth. Shale oil is prized for its light density and low sulfur content, which is desirable for refineries as a cheaper alternative to heavier and sour crudes produced by Canada, Mexico, and the Gulf region.