THE US’ reliance on imported energy is expected to decline in the next two decades with increased domestic oil production, natural gas and renewable energy improvements in energy efficiency, EIA reported.
A boom in shale oil production will raise US domestic crude output by a fifth over the next decade, helping to slash the country’s dependence on foreign oil imports, the US energy agency said its recent annual report.
US oil imports are expected to drop to 36 percent of total consumption by 2035 from 49 per cent in 2010 as production rises while demand is limited by modest economic growth plus higher vehicle efficiency standards, according to the EIA report.
“US gas production will exceed consumption early in the next decade with the country expected to become a net exporter of LNG in 2016, a net pipeline exporter in 2025, and an overall net exporter of natural gas in 2021,” the EIA said.
Continued development of tight oil in the onshore US and drilling in the US Gulf of Mexico will push domestic crude oil production to an estimated 6.7 million bopd in 2020, a level not seen since 1994.
Even with a projected decline after 2020, US crude oil production remains above 6.1 million bopd through 2035, the EIA said in the Annual Energy Outlook 2012 (AEO2012) Reference case, which includes updated projections for U.S. energy markets through 2035.
The share of natural gas used in electricity generation will grow from 24 per cent in 2010 to 27 per cent in 2035, while the share of renewables used in power generation will rise from 10 per cent to 16 per cent over the same time period.
Gas News | US
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