U.S. crude-oil production will soar for several more years to nearly match its 1970 record in 2016, according to federal projections released Monday that underscore seismic shifts in the country’s energy landscape.
The federal Energy Information Administration’s latest Annual Energy Outlook predicts that daily U.S. production will rise to reach 9.5 million barrels per day in 2016, and then will level off before slowly falling after 2020.
Meanwhile, U.S. natural-gas production, already at record levels, is slated to keep soaring, according to the annual report from the Energy Department’s independent statistical arm that forecasts energy trends through 2040.
The report predicts a 56 percent increase in natural-gas production between 2012 and 2040, and it also charts rising gas exports.
It predicts that the U.S. will become a net exporter of liquefied natural gas in 2016 and an overall net exporter of gas in 2018—two years earlier than last year’s report forecasts.
The report, to be sure, is only EIA’s so-called reference case—it assumes current laws and policies remain unchanged. A wider range of forecasts will appear in an expanded version of the report next spring.
But it nonetheless provides new evidence of a surge in U.S. oil and natural-gas development that’s prompting new political battles, such as whether to ease heavy restrictions on U.S. crude-oil exports
“EIA’s updated reference case shows that advanced technologies for crude oil and natural gas production are continuing to increase domestic supply and reshape the U.S. energy economy as well as expand the potential for U.S. natural gas exports,” said EIA Administrator Adam Sieminski in a statement.
“Growing domestic hydrocarbon production is also reducing our net dependence on imported oil and benefiting the U.S. economy as natural-gas-intensive industries boost their output,” he said.
Analysts are playing catch-up as development surges.
For instance, the “reference” case in the 2013 version of the report predicted that U.S. crude-oil production would rise to 7.5 million barrels per day in 2016 before leveling off and then starting to decline a few years later, a projection far below the forecast of 9.5 million barrels in the new report.
What We're Following See More »
Perhaps Donald Trump can take a plebiscite to solve this whole messy immigration thing. At a Fox News town hall with Sean Hannity last night, Trump essentially admitted he's "stumped," turning to the audience and asking: “Can we go through a process or do you think they have to get out? Tell me, I mean, I don’t know, you tell me.”
Donald Trump "nearly quintupled the monthly rent his presidential campaign pays for its headquarters at Trump Tower to $169,758 in July, when he was raising funds from donors, compared with March, when he was self-funding his campaign." A campaign spokesman "said the increased office space was needed to accommodate an anticipated increase in employees," but the campaign's paid staff has actually dipped by about 25 since March. The campaign has also paid his golf courses and restaurants about $260,000 since mid-May.
Donald Trump probably isn't taking seriously John Oliver's suggestion that he quit the race. But he has canceled or rescheduled rallies amid questions over his stance on immigration. Trump rescheduled a speech on the topic that he was set to give later this week. Plus, he's also nixed planned rallies in Oregon and Las Vegas this month.
Donald Trump's Fox News brain trust keeps growing. After it was revealed that former Fox chief Roger Ailes is informally advising Trump on debate preparation, host Sean Hannity admitted over the weekend that he's also advising Trump on "strategy and messaging." He told the New York Times: “I’m not hiding the fact that I want Donald Trump to be the next president of the United States. I never claimed to be a journalist.”