Exxon Report Says U.S. Energy Production Surge to Continue
A new report released this week by fuel giant Exxon says the energy production revival in the United States will continue into the far future, confirming the U.S. Energy Information Administration’s (EIA) prediction that the country will become a new exporter of energy by 2025.
The annual long-term energy report outlines Exxon’s view of the surging American energy sector, taking into account new production in both the U.S. and Canada, along with increased energy efficiency and expanded distribution networks, in determining the country’s energetic future, with the report also noting that generally flat demand around the developed world is expected over the next 10-15 years. (Read More: U.S. Energy Production to Hit Record Highs)
“This competitive energy supply provides a strong foundation for increased economic output in the U.S., opening up many new and valuable opportunities in many regions and sectors of the U.S. economy,” said William Colton, Exxon Mobil’s vice president of corporate planning. “This includes not only the energy sector, but also chemicals, steel and manufacturing.”
Outside of the developed world is a different story, with global demand still expected to increase up to 35 percent by 2040 on the backs of economically burgeoning nations like China and India, leaving net exporting regions with energy-hungry buyers, even as efficiency rises in Canada, the United States, the European Union, and other developed areas. (Read More: How Much Oil Does the World Produce?)
Besides becoming a net exporter for the first time in its history, the United States will also gradually shift from the use of coal to generate energy, to natural gas, with the latter predicted to overtake the former in popularity, allowing natural gas to become the country’s second most used fuel, ranking behind oil.
Despite the sunny forecast, none of these factors will relegate the U.S. to the status of being truly energy independent, as the country will still rely heavily on imports of Canadian oil for the foreseeable future.