Tags: energy | imports | exports | oil | United States

Report: US Energy Exports Could Top Imports in Five Years

By    |   Wednesday, 15 April 2015 12:01 PM

The United States is on pace to export more energy than it imports possibly before the end of this decade, according to a new report.

A report released by the Energy Information Administration (EIA) states the U.S. could reverse its current situation and become a net exporter in the energy sector by 2019.

The EIA is predicting the U.S. will produce 10.6 million barrels of oil a day by 2020. Last year, the agency estimated the daily oil output would be 9.6 million barrels by 2019.

The country has been a net importer of energy since the 1950s, according to the EIA, and is actually a net exporter of petroleum products and coal. But the report says the U.S. is a net importer of natural gas and crude oil.

In 2014, according to the report, the U.S. imported 23.3 quadrillion British thermal units (Btu) of energy and exported 12.2 quadrillion Btu. The coming years could see those figures creep closer and closer together as the U.S. becomes more energy independent.

The EIA outlines several scenarios that predict when the U.S. could become a net energy exporter, with the earliest prediction coming in 2019 and the latest in 2040.

"These changes in energy trade are anticipated based on both increases in domestic production — especially crude oil and natural gas — and more moderate expectations of demand growth," the EIA said in a press release about the report.

Meanwhile, it was reported this week that the shale oil boom that has pushed U.S. crude production to the highest level in four decades is about to end.

The decline in production has put half the country's drilling rigs into a holding pattern.

"We're going off an inevitable cliff" because of the shrinking rig counts, Carl Larry, head of oil and gas for Frost & Sullivan LP, said Monday. "The question is how fast is the decline going to go. If it's fast, if it's steep, there could be a big jump in the market."

The drop in oil prices has claimed 12,000 jobs in the U.S. and 100,000 worldwide.

Last week, the EIA said oil prices could be $5-$15 lower if sanctions on Iran are lifted.  Iran was once the world's fifth-largest oil producer.

© Mike Reagan

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The United States is on pace to export more energy than it imports possibly before the end of this decade, according to a new report.
energy, imports, exports, oil, United States
Wednesday, 15 April 2015 12:01 PM
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