To say that the US oil and gas industry is incredibly strong, at this point, might be an understatement.
According to a number of recent government forecasts, crude oil production in the US will rise from an average of 9.2 million barrels per day in 2017 to roughly 9.8 million barrels per day by the end of 2018.
Not only does this expand an already stable market, but it sets an all-time high – beating the record from 1970.
Largest Oil Production Increase Ever
According to another report issued by the International Energy Agency in Paris, the US will account for 80% of the increase in the world’s oil supply between now and 2025. This is thanks to technology that let producers explore new ways to pump oil while keeping costs low.
In fact, by the end of the next decade, the US will officially become a net exporter of oil – which hasn’t been true since the 1950s.
Natural Gas Boom
Things are looking strong for natural gas, too. By as soon as 2025, the US will become the largest global exporter of liquefied natural gas. This is particularly relevant as countries such as China are switching from coal to cleaner, more sophisticated energy sources.
This surge in natural gas dominance is important as studies predict US oil demand will fall by over four million barrels per day by 2040. By then, predictions say that electric vehicles will be ubiquitous and traditional vehicles will enjoy incredible fuel efficiency.
So, not only is the US poised to become a global energy leader, strategic thinking has made it possible to hold that grip (or tighten it) for decades.
The Implications of the US Oil and Gas Boom
The implications of this development don’t end with a stronger economy, although that is a factor.
The US’ leadership in energy will give diplomats more power, especially as its dependency on Middle East oil decreases every year.
None of that is to say that the Middle East will suddenly lose its key role on the global stage – far from it. Asia in particular will all but guarantee the Middle East remains one of the most essential exporting regions in the world even while Middle East oil may become less important in the West.
However, the delicate balance of that relationship is shifting in a way that many didn’t think was possible.
Overall, it’s safe to say that oil and gas activity is only going to get stronger – which boosts the US’ economy and global standing.
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