According to the report on North America energy production, it is forecast that there will be healthy future for US energy, with faster growth led by tight oil, including huge oil production from an array of producers and other shale rock formations.
Moreover the researchers also forecast- ‘despite the slumping prices of natural gas, the North US will double gas production by 2020.’ And almost all the Northeast shales haven’t not witnessed gas drilling decline even in the case of low cost of development.
The researchers further estimated that this year $150 billion will be spent for developing North American gas and oil. And more that 40% of that spending will be accounted for tight oil. Alongside this, increasing numbers of oil and gas investors will push oil production to more that 5 million barrels a day by 2019. Also the growth in domestic crude oil will mitigate imports to just 15 % of U.S by 2020.
Additionally, growth in oil sands crude from Canada can largely trim down imports from the Gulf regions. But this will further need new infrastructure such as rails and pipelines to carry the crude across southern regions.
The upsurge in oil production is hugely making a difference in the energy market. This production has increased by a million barrels a day last year and consequently reaching its highest average per day since 1995. Further, US have been emphasizing the unconventional sources that have hugely increased the oil production between 2008 and 2012, reaching to almost 1 million barrels per day at end of the last year.
On the top of that the demands of oil and gas is increasing over the years; resulting into triggered high prices. Besides, US is on the go to exploring large amount of energy resources and similarly employing new technologies and excellent methods of extracting oil and gas. Thus, it will see a substantial increase in the energy production in an age of years.
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