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Canada,United States : US intends to hit crude oil production record.

By 2020, the world oil market might witness changes equal in scale with the boom of the 1970s when oil prices doubled. However, this time the trend will be reversed, due to the shale gas revolution, oil could become twice as cheap in the next decade.

Natural gas production will see a stable growth. Between 2012 and 2040, production will increase by 56% and the volumes will reach 37.6 trillion cubic feet. By 2040 natural gas will become the main fuel in electricity production in the US.

The growing part of market requirements will be fulfilled with internal production, so imports from Canada, the primary oil supplier in the US, will decrease by 30%, from 85 trillion cubic metres in 2012 to 59.5 trillion in 2040. Exports of liquefied natural gas have not started yet but they will reach 99 trillion cubic metres in 2029 and will stay on this level until 2040.

Exports to Canada will increase on average by 1.2% until 2040, and exports to Mexico will increase 5 times as much. Before 2020, gas exports will surpass imports.

EIA experts believe that lower natural gas prices will promote industrial development and the volume of industrial supply that will increase by 3% over a decade, after which the growth will decline to 1.6% until 2040.

According to US experts, the shale gas boom in the US is improbable to be over before 2019.

The US plans to reach record production levels by using the hydraulic fracturing technology.

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Publication:Mena Report
Date:Dec 19, 2013
Words:266
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