Your Casino Chips vs American Currency post is very interesting allodial.

Thinking about what happened in the past.

April 22, 2005

Oil, gold and commodities have all been priced in US dollars since 1975 when OPEC officially agreed to sell its oil exclusively for US dollars. From 1944 until 1971, US dollars were convertible into gold by central banks in order to adjust for any trade imbalances between countries. Up to that point, the price of gold was fixed at US$35 per ounce, and the price of oil was relatively stable at about US$3.00 per barrel. Once the US ceased gold convertibility in 1971, OPEC producers were forced to convert their excess US dollars by purchasing gold in the marketplace. This resulted in price increases for both oil and gold, until eventually oil reached US$40 per barrel and gold reached US$850 per ounce.


The US has enjoyed inexpensive oil-based energy for nearly a century, and this is one of the prime factors behind the unprecedented prosperity of its economy in the 20th century. While the US accounts for only 5 percent of the world's population, it consumes 25 percent of the world's fossil fuel-based energy. It imports about 75 percent of its oil, but owns only 2 percent of world reserves. Because of this dependency on both oil and foreign suppliers, any increases in price or supply disruptions will negatively impact the US economy to a greater degree than any other nation. http://www.gold-eagle.com/article/go...relationship-0

Crude Oil Production http://www.eia.gov/dnav/pet/pet_crd_...c_mbblpd_m.htm

World Crude Oil Production by Year (Thousand Barrels per Day) http://www.indexmundi.com/energy.asp...aph=production

The significance of US oil consumption
As the single largest oil importer in the world, the United States’ oil demand can have a large impact on oil import and crude tanker demand. If US demand for oil grows, even in the face of increasing domestic production, imports could continue to rise. On the other hand, if demand isn’t growing as fast as domestic production, it negatively affects crude tanker demand. http://marketrealist.com/2013/10/inc...-oil-shippers/

Strong Oil Growth Driven by U.S. Operations
Devon continued to deliver strong oil production growth in the third quarter. In aggregate, oil production averaged 165,000 barrels per day, a 16 percent increase compared to the third quarter of 2012. The most significant growth came from the company’s U.S. operations, where third-quarter oil production increased 38 percent year over year. This dramatic increase in U.S. oil production is largely attributable to growth from Devon’s Permian Basin and Mississippian-Woodford Trend projects.

Total production of oil, natural gas and natural gas liquids averaged 691,000 oil-equivalent barrels (Boe) per day in the third quarter, exceeding the mid-point of the company’s guidance range by approximately 3,000 barrels per day. The company’s highest margin products, oil and natural gas liquids, now account for 43 percent of total production.

“Devon delivered another quarter of solid results, both operationally and financially,” said John Richels, president and chief executive officer. “Once again we significantly increased light oil production in the U.S., reflecting our continued success in the Permian Basin and emerging oil plays. Additionally, Devon’s disciplined pursuit of high-margin production has improved cash margins by 16 percent year over year to our highest level in the past eight quarters.” http://seekingalpha.com/news-article...r-2013-results

LONDON (Reuters) - The United States will stride past Saudi Arabia and Russia to become the world's top oil producer in 2015, the West's energy agency said, bringing Washington closer to energy self-sufficiency and reducing the need for OPEC supply. http://money.msn.com/business-news/a...12&id=17098999