Innovations in hydraulic fracturing and horizontal drilling are credited for the anticipated booms in shale-oil and natural gas. According to a Wall Street Journal article, oil production could increase from a peak of 8.1 million barrels per day (bpd) last year, to over 11 million bpd by 2020. IEA estimates that by the end of the decade, U.S. oil imports could be cut in half (to 10 percent of total energy needs) due to higher domestic oil production and higher Corporate Average Fuel Economy (CAFE) standards. With regard to natural gas, production has grown at a fairly steady rate since 2008, but leveled off since the beginning of the year due to a bottoming-out of natural gas prices. In the first eight months of the year, natural gas comprised 31 percent of total U.S. energy needs, up 7 percent compared to the previous year.
This news is both comforting and disconcerting. On one hand, it’s reassuring to know that the U.S. could actually become energy independent. On the other hand, large stores of accessible oil and natural gas imply that investments in clean, renewable energy will probably be delayed until the next big energy crisis. Check out Nick’s analysis of the news in his next piece on Saturday.
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