The U.S. will become a key source of energy supplies to meet growing demand globally, with innovation in technology and financing set to boost oil and gas production in the next decade.
Frank Fannon, Assistant Secretary in the energy bureau of the U.S. state department made this known on Tuesday at an industry conference in Singapore.
“In the next five to 10 years, we expect to see improved recovery rates and even a doubling in some of our most prolific (gas) basins.
“What this means in the near-term is that the U.S. may double production, double export capacity and introduce new market innovation,” he said.
Fatih Birol, Executive Director of the International Energy Agency (IEA), said at the same event that the U.S. would become the “undisputed leader” of global oil and gas production.
In oil, the U.S crude production overtook that of top exporter Saudi Arabia earlier in 2018, recently hitting a record 11 million barrels per day (bpd), putting the U.S. within reach of top producer Russia.
Largely thanks to the U.S. increase, crude output from the world’s top three producers reached 33 million bpd for the first time in September, Refinitiv Eikon data showed.
That’s an increase of 10 million bpd since the start of the decade and means that these three producers alone now meet a third of global crude demand.
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In gas, the IEA’s Birol said the U.S., together with Australia and Qatar would supply 60 per cent of global liquefied natural gas by 2023.
The U.S. currently only has two LNG export projects operational, although several are waiting for financial approval. (Reuters/NAN)
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