US overtakes Saudi Arabia as biggest oil producer in 2014, report says

According to a report from BP, US has overtaken Saudi Arabia as the world’s biggest oil producer in 2014.

It has also emerged as the largest producer of oil and gas overtaking Russia.

Oil production in the US increased by 1.6 million barrels per day (bpd) and was the first country to record 1 million bpd for three consecutive years.

Production of oil outside Organization of the Petroleum Exporting Countries rose by 2.1 million bpd during the year.

The report titled, ‘Statistical Review of World Energy’, revealed that primary energy consumption slowed ‘markedly’, growing at a minimal rate of 0.9% last year, the lowest since the late 1990s.

Energy consumption in China has also dipped to its lowest level since 1998 as the country’s economy rebalances away from energy intensive sectors. However, the country is still largest prospect for energy growth, the report added.

BP Group chief executive Bob Dudley said: "The eerie calm that had characterised energy markets in the few years prior to 2014 came to an abrupt end last year.

"These events may well come to be viewed as symptomatic of a broader shifting of the tectonic plates that make up the energy landscape, with significant developments in both the supply of energy and its demand.

"Our task as an industry is to meet today’s challenges while continuing to invest to meet tomorrow’s demand, safely and sustainably."

Oil prices had dipped sharply in the year, so did the global growth rate for natural gas.

While the declining prices for oil was largely caused by increasing supplies from non-OPEC countries, the weak growth rate for natural gas was triggered by reduced consumption owing to mild European winter.

Oil consumption across the globe has grown by 0.8 million barrels per day (bpd) or 0.8%, which is significantly low compared to 1.4 million bpd increase in 2013.