Energy Independence by 2025 a Possibility | Russell T. Rudy Energy LLC
According to a recent article in “Rigzone”, energy consulting group Wood Mackenzie thinks the U. S. could be energy independent again by 2025. If so, this would be the first time since 1952. Wood Mackenzie thinks this is possible because domestic oil and gas production is increasing and demand is decreasing. However, a number of variables could determine whether we achieve this milestone.
Domestic oil and gas production has increased by 42% over the last seven years, largely due to the shale revolution. The Bakken, Eagle Ford, and Wolfcamp shale plays have all contributed toward the run up in production. Unconventional oil and gas projects have made the Permian Basin of West Texas and Southeastern New Mexico the largest crude oil producing region in the U. S.
Counterintuitively, reducing the ban on crude exports and streamlining the approval process for Liquefied Natural Gas projects would expedite our progress toward energy independence. Access to the international markets, and their higher prices, would make more domestic projects economically feasible, thereby further increasing production.
Production could also be stimulated by promising advances in Enhanced Oil Recovery technology, but here again, higher prices would be needed to justify this incremental expense. Conversely, domestic production could be compromised by fracking bans.
As for decreasing demand, the use of natural gas for power generation needs to stabilize or decrease. For this to happen, the use of coal in power plants needs to stay flat or increase. Since CO2 emissions and the use of coal are politically charged issues, this is far from certain. Decreasing demand due to efficiency gains in the transport sector is also encouraging.
While there are a number of variables at play, Wood Mackenzie sees energy independence as a definite possibility by 2025.
To read the article in its entirety, please go to www.rigzone.com/news/article.asp?hpf=1&a_id=135593&utm .
