The US will overtake Saudi Arabia as a major producer of oil within the next decade. This will make the world’s largest fuel consumer practically self-reliant and on track to become a net exporter.
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These are words that would have been difficult to believe only a few years ago. But technology has fostered the extraction of oil from underground rock formations. Starting in 2020, this will make the US the largest oil producer for about five years.
The US met 83% of its own energy needs in the first six months of 2012. Its imports of crude oil have declined by 11% this year.
As unrest increases in the Middle East, oil production grows, and the US takes advantage of the boom in natural gas, the country may be able to shield itself from supply disruptions.
Saudi will continue to be a force in the oil market as it increases and decreases production, influencing prices.
But the US is expected to pump 11.1 million barrels of oil a day in 2020 and 10.9 million in 2025.
That’s 500,000 barrels a day higher than Saudi is expected to produce from 2020 to 2025 and 100,000 barrels a day more than Saudi is expected to produce in 2025.
The IEA says the US is reversing dramatically the trend seen in most other energy-importing countries. It cited the failure of global energy efficiency efforts in comparison.
The US will see low prices and abundant supplies of gas overtake oil
by 2030 as the largest fuel component in the energy mix.