We are pleased to present the winter edition of our Pipeline Customer Newsletter. We have included information about how to keep your business running during emergency weather, how to protect your vehicle in freezing temperatures, Diesel Exhaust Fluid, and much more! Below is the newsletter message from Diesel Direct's Executive Chairman, Dan Abrams, regarding fracking and US energy independence. Click here to read the entire Pipeline Newsletter.
2013 has brought remarkable progress in the energy industry. Thanks to impressive developments in engineering, the oil extracting process has become even more sophisticated and much of it is carried out through fracking or hydraulic fracturing. Historically, fracking has been practiced since the 1940s, but what has been developed more recently is the ability for drillers to fracture the shale rock under the earth’s surface and extract oil & gas that was previously trapped & unattainable.
Thus, we have a surge in oil and gas production that is steadily bringing America toward energy independence. Billions of barrels of oil (1 barrel of oil equals 42 gallons) and trillions of cubic feet of gas reserves are under our lands and we are officially extracting them. USA Today reported that the US reached a huge milestone this November producing more oil than it imports for the first time in almost two decades. The U.S. Energy Information Administration projects that US crude oil production will reach 8.5 million barrels per day by the end of 2014. At the same time, we must keep in mind that oil is a global commodity and the demand for oil continues to grow throughout the world. According to the BP 2013 Review of World Energy, global oil consumption has grown by 890,000 barrels per day.
The crude reality is that oil is always sold to the highest bidder, whichever country it may be. Nevertheless, it is reassuring to know we have a strong domestic supply in our possession. All in all, I would say this past year has proven to be a very promising year for domestic fuel supply and refining. The end result seems to be that diesel fuel prices are stabilizing due to the excess capacities that the United States has put into the system.