The ongoing boom in domestic oil and natural gas production will be essential for both the American and global economies over the next three decades, according to a BP's updated Energy Outlook 2035.
The outlook is designed to answer three questions: Will the world have sufficient energy to fuel continued economy growth? Will that energy be secure? And will it be sustainable?
BP found that U.S. domestic oil and gas production will be critical to all three questions.
The London-based energy company estimates that U.S. oil and natural gas production will help supply the estimated 41 percent increase in global energy consumption by 2035. About 95 percent of the growth is expected from China, India and other emerging economies.
BP projects that U.S. energy production will jump 24 percent while demand will grow by only 3 percent.
“New energy forms such as shale gas, tight oil and renewables will account for a significant share of the growth in global supply,” the report stated.
As for sustainability, the report projects that carbon dioxide emissions are expected to decline in the United States and Europe because of a combination of increased efficiency and a growing use of renewables and natural gas.
“Put simply, people are finding ways to use energy more efficiently because it saves them money,” BP Chief Economist Christof Ruhl said. “This is also good for the environment — the less energy we use, the lest carbon we emit.”