US to Overtake Russia as World’s Top Oil producer by 2019, and Become a Net Energy Exporter by 2022

• Oil Sector is Enjoying the Feast Under the Price Growth

As the most important energy source and most traded commodity, oil prices began to revive since late 2017. Over the first month of 2018, WTI has mostly been stuck between $56 to $58 per barrel, with Brent fluctuated at $61-64, but still higher than where we were before.

It’s anticipated that US shale oil production would keep rising and reach 110,000 barrels/day in March, said by IEA. The country’s shale oil boom is exerting profound impact on the global oil market. IEA Executive Director Fatih Birol said the US would overtake Russia as the biggest crude oil producer “definitely next year,” if not this year.

According to U.S. Energy Information Administration: U.S. oil output would exceed 11 million bpd by late 2018, while the past top producer Russia failed to keep its dominant role. Followed by International Energy Agency (IEA), which released on February 27^th, said the U.S. is expected to replace Russia’s top oil producer role by 2019.

• Gas Industry’s Prosperity is Just Start

Not only the oil but also the US gas industry is set to embrace the biggest increase of production has ever seen over the next few years. Consist with the earlier forecasted of IEA, U.S. is also on its way to become the No.1 exporter of liquefied natural gas, because of the growing demand from China, India, and Southeast Asia after these countries turn to widely apply clean energy.

With more industries are transforming into eco-friendly contributors, the oil demand of U.S. would fall by over 4 million barrels a day by 2040, the expanding electric vehicles and improved fuel efficiency in those vehicles that still use combustion engines.

As the earlier forecasted by Energy Department, U.S. is set to become a net energy export country by 2022.

The US natural gas export has successfully reached the new market beyond traditional North American countries, shipments of crude oil increase and outward flows of refined products such as gasoline remain robust, according to Annual Energy Outlook. Additionally, compared with the national energy consumption expectation before, the figure is now believed to hardly grow by 0.4% to 2050, while the economic growth is predicted to climb 2%. If the forecast goes right, 2022 will mark the first year the U.S. energy exports surpassed imports since 1953.

Along with the US strategy to dominate the world energy market, more cutting-edge technologies will be applied in its plan. For oil sector, blockchain, the distributed ledger technology which was possibly the hottest tech topic in the energy sector in 2017 and is going to be heating in 2018. As a high-tech solution for world commodity trade,US keeps the open mind for deeper application.

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Posted from my blog with SteemPress : https://insights.jumoreglobal.com/us-to-overtake-russia-as-worlds-top-oil-producer-by-2019-and-become-a-net-energy-exporter-by-2022/

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