US could be world’s biggest oil producer

US could be world’s biggest oil producer

new york

U.S. oil output is surging so fast that the United States could soon overtake Saudi Arabia as the world’s biggest producer.

Driven by high prices and new drilling methods, U.S. production of crude and other liquid hydrocarbons is on track to rise 7 percent this year to an average of 10.9 million barrels per day. This will be the fourth- straight year of crude increases and the biggest single-year gain since 1951.

The boom has surprised even the experts.

“Five years ago, if I or anyone had predicted today’s production growth, people would have thought we were crazy,” says Jim Burkhard, head of oil markets research at IHS CERA, an energy consulting firm.

The Energy Department forecasts that U.S. production of crude and other liquid hydrocarbons, which includes biofuels, will average 11.4 million barrels per day next year.

That would be a record for the U.S. and just below Saudi Arabia’s output of 11.6 million barrels.

Citibank forecasts U.S. production could reach 13 million to 15 million barrels per day by 2020, helping to make North America “the new Middle East.”

Stocks sink as Xerox, 3M scare investors

new york

Nobody was expecting this round of corporate financial reports to be great. But underwhelming results — particularly revenue, which offers a read on the economy — still are rattling investors.

The Dow Jones industrial average plunged Tuesday to its lowest level in nearly seven weeks. Big-name companies reported weak quarterly revenue and lowered their forecasts for the rest of the year.

On Tuesday, the Dow sank as much as 262 points, or roughly 2 percent, before ending the day down 243.36 points to 13,102.53. The decline was the Dow’s third-steepest this year.

Companies of all stripes signaled that the economy is far from healed, and that demand is weaker than a year ago.

Revenue fell compared with a year ago at DuPont, 3M, UPS and Xerox.

Because of their global footprints and variety of products and services, those companies augur how the world economy is performing.

Watchdog to oversee debt collectors

washington

Expanding its reach, the government’s consumer- finance watchdog agency will monitor the day-to-day operations of big debt-collection companies, the agency said today.

It is the first time that debt collectors have been subject to federal scrutiny of their routine business practices.

The move lengthens the list of industries that face oversight by the Consumer Financial Protection Bureau.

The agency was set up after the financial crisis to protect consumers from misleading marketing, unfair fees and other harmful practices.

Vindicator wire reports

Selected local stocks

STOCK, DIVIDENDCLOSECHANGE

Aqua America, .66, 24.87 —.34

Avalon Holdings,4.00—.04

Clear Channel, .73 69.23 —.70

Cortland Bancorp, 9.60.00

Farmers Nat., .125.90 –.01

First Energy, 2.20, 45.53—.31

FirstMerit Corp., .64,13.97 —.27

First Niles Financial, .32,6.70.00

First Place Fin., .77.04

FNB Corp., .48,10.71.03

General Motors,23.87—.75

General Electric, .68,21.28—.42

Motors Liquidation, .0422.00

Huntington Bank, .16, 6.35—.11

JP Morgan Chase, 1.20,41.33—.76

Key Corp, .20,8.43—.17

LaFarge, 14.15 —.48

Macy’s, .80, 39.46—.53

Parker Hannifin, 1.64, 76.74—1.36

PNC, 1.60,58.64—.45

RTI Intl. Metals,23.39—.45

Simon Prop. Grp.,4.20,151.02—1.92

Stoneridge 4.90 .05

United Community Fin. 3.85.02

Selected prices at 4 p.m. Tuesday. Provided by Stifel Nicolaus. Not to be construed as an offer or recommendation to buy or sell any security.