The future of the United States’ oil and gas industry appears bright. The last decade has seen a shale boom, which has contributed to a vast improvement in production. The country also has the potential to become one of the world’s largest distributors as well as producers. Oil and gas are very important in the country today, and the demand doesn’t look to be slowing down any time soon.
The Shale Boom of the Decade
Many experts argue that US gas production peaked back in 2005 or that crude oil production was at its highest in 1970. This simply isn’t true. We’re in the middle of a shale boom that began in 2008. This boom is influencing both the domestic market as well as energy around the world. Since then, the country’s oil has reached 140% to 12.2 million b/d. The gas output is up 55% to 88 Bcf/d.
Today, the United States is the world’s top oil and gas producer. The US now produces 25% more gas and 20% more oil than Russia, one of the nation’s top competitors.
While things looked grim during the 2014-2017 price collapse, the industry’s outlook is overall quite positive. According to IHS Markit, 1.9 million new jobs in oil and gas will become available between 2016 and 2035.
Oil and Gas are Still Important Sources of Energy
Even as other sources of energy appear to rise in popularity, oil and gas are still responsible for meeting 65% of total U.S. energy demand. Natural gas generates 35% of all electricity in the US. When it comes to transportation, oil fuels 97% of the country’s needs. Although some may argue that this will change with the rise of electric cars, this is not actually the case. Only 2% of cars sold in the country last year were electric.
Potential for Larger Global Distribution
In addition to being the largest oil and gas producer, the United States also has the potential to lead the world when it comes to selling oil and gas. The US exports 35% more crude oil today than they did a year ago. They’re reached 2.5 million b/d, despite the United States’ trade war with China. Oil production is also continuing to be developed, and has the potential to continue to grow in the future.
We’ve witnessed a recent shale boom, which has improved production. The United States is still powered by oil and gas, even with the introduction of electric cars. The country also has the potential to become a global leader when it comes to oil distribution!