U.S. to Be World’s Top Oil Producer in 5 Years

GQ Brotha · Nov 12, 2012

http://www.nytimes.com/2012/11/13/business/energy-environment/report-sees-us-as-top-oil-producer-in-5-years.html

The United States will overtake Saudi Arabia as the world’s leading oil producer by about 2017 and will become a net oil exporter by 2030, according to a new report released on Monday by the International Energy Agency.

That increased oil production, combined with new American policies to improve energy efficiency, means that the United States will become “all but self-sufficient” in meeting its energy needs in about two decades — a “dramatic reversal of the trend” in most developed countries

Middle Eastern oil once bound for the United States would probably be rerouted to China. American-mined coal, facing declining demand in its home market, is already heading to Europe and China instead.

There are several components of the sudden shift in the world’s energy supply, but the prime mover is a resurgence of oil and gas production in the United States, particularly the unlocking of new reserves of oil and gas found in shale rock. The widespread adoption of techniques such as hydraulic fracturing and horizontal drilling has made those reserves much more accessible, and in the case of natural gas, resulted in a vast glut that has sent prices plunging.

The report predicted that the United States would overtake Russia as the leading producer of natural gas in 2015.
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Mr. Levi said that the I.E.A. report was generally “good news” for the United States because it highlights the nation’s new sources of energy. But he cautioned that being self-sufficient did not mean that the country would be insulated from seesawing energy prices, since those oil prices are set by global markets.

“You may be somewhat less vulnerable to price shocks and the U.S. may be slightly more protected, but it doesn’t give you the energy independence some people claim,” he said.

Also, he noted, the agency’s projection of United States self-sufficiency assumed that the country would push ahead with improving gas mileage in cars and energy efficiency in homes and appliances. “It’s supply and demand together that adds up to this striking conclusion".
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The new energy sources will help the United States economy, Mr. Birol said, providing continued cheap energy relative to the rest of the world. The I.E.A. estimates that electricity prices will be about 50 percent cheaper in the United States than in Europe, largely because of a rise in the number of power plants fueled by cheap natural gas, helping American industries and consumers.
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Hell yeah

Interesting and thank goodness, the further we get away from reliance on Middle Eastern oil, the better in my book.

Would be a welcome sight.

LA · Nov 12, 2012

Its about damn time!!

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