EIA: Exports are Growing, Natural Gas Production is Set to Double
The oil and natural gas industry’s boom in production is not going to slow down any time soon and that is good news for the economy. The U.S. Energy Information Administration’s (EIA) Annual Energy Outlook 2014 finds the industry will continue to strengthen the economy through 2040. The projections show the oil and natural gas industry will continue to help the U.S. decrease imports, increase exports and boost per capita income. The report echoes the latest campaign message from the OERB; through the oil and natural gas industry there are better days ahead.
The EIA’s report confirms predictions that domestic production of oil and natural gas will continue to grow and consequently so will exports, especially of natural gas. According to the EIA, crude oil production will increase by nearly one million barrels per day on average over the next few years. Meanwhile, natural gas production is projected to increase dramatically, with a more than 50 percent increase between now and 2040. In other words, natural gas production in the U.S. will more than double over the next 26 years.
These astounding statistics will obviously have many positive effects on the future of the economy but the EIA points out two specifically. First, natural gas-intensive industries, like refining, petrochemicals and metal-based durables, will increase production. That will mean more products manufactured in the U.S. and more jobs. Secondly, natural gas will become the largest source of power in the U.S., accounting for 35 percent of total electricity generation by 2040.
These projections by the EIA are reinforcing what other economic analysts have already predicted. It is clear that the oil and natural gas industry is bringing better days to U.S. in the near future and will continue to do so over the next several decades.
To see the full study, go to http://www.eia.gov/forecasts/aeo/er/index.cfm.
Source: U.S. Energy Information Administration