On February 5th, 2019, the President of the United States, Donald J. Trump, gave his second official State of the Union Address. One of the main topics of conversation during that speech was record-breaking oil prices. Americans have enjoyed lower gas prices, and he believes that the rollback of industry regulations has caused this shift. Is America in an energy revolution?
President Trump stated that the United States is the top supplier of both natural gas and oil in the world. American energy is a net exporter for the first time in nearly seven decades. However, energy experts didn’t buy into that statement. Analyzing data, the numbers show that America only became a top supplier for just a short period in 2018. The numbers show that this country’s usage and the production of hydrocarbons still makes us a net importer. However, imports have tumbled hard in the last two years.
The Energy Information Administration released an estimate of crude oil production. According to last week’s numbers, it appears that output is around 12 million bpd. In 2018, the agency predicted that if the heightened pace continues, then it’s possible that, by the year 2020, America could become a net energy exporter.
Natural gas production has also increased. The U.S. has surpassed countries like Russia and Iran to take the title of world’s largest producer. Another good sign of growth is that the natural gas exports are increasing. If the exporting industry continues booming, it’s possible that the United States could challenge Russia for their status as a top European supplier.
The market is healthy right now and the supply situation has caused prices to come under pressure. However, experts estimate that by 2022, things will once again tighten. There is a need for investment decisions that includes the expansion of liquefaction projects to sustain the future demands of the industry. The United States is one of the most significant contributors to global LNG production growth. Analysts estimate that production will reach 11 percent, which is a total of 350 million tons that is being supplied to the world.
Though it’s true that the energy industry is in better shape than it has been in years, the status of a net supplier has yet to be reached and/or justified. However, if things continue to improve, the possibility remains.