Increased domestic oil production could lead to global changes

Booming oil production throughout the country has boosted employment, profits and taxes and has moved the country closer toward energy independence. It also could lead to global infrastructure and geopolitical changes.
by Adam Wilmoth Modified: July 26, 2013 at 10:00 am •  Published: July 25, 2013
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Booming oil production throughout the country has boosted employment, profits and taxes and moved the country closer toward energy independence.

It also could lead to global infrastructure and geopolitical changes.

The International Energy Agency said this month that oil production from non-OPEC countries likely will outpace global demand next year in a move that should “give bulls some cause for alarm.”

“While demand growth is also forecast to pick up momentum,” this “will still fall short of forecast non-OPEC supply growth,” IEA said in its July Oil Market Report.

The report forecast that world oil consumption will increase by 1.2 million barrels a day to 92 million barrels a day next year while supplies from countries outside of the Organization for Petroleum Exporting Countries will add 1.3 million barrels a day to 55.9 million barrels a day.

Such an imbalance could drive oil prices lower.

Thursday, however, the U.S. Energy Information Administration painted a stronger picture for global demand, at least in the long term.

The agency projected world energy consumption to increase 56 percent by 2040, fueling continued demand for domestic energy for decades to come.

The forecast depicts renewables and nuclear power as the world's fastest-growing energy sources, but shows fossil fuels continuing to supply almost 80 percent of world energy use though 2040.

Industry leaders and politicians have touted increased domestic production as a way to reduce the country's dependence on Middle Eastern oil and minimize the way instability in the Middle East can affect the American and global economies.

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by Adam Wilmoth
Energy Editor
Adam Wilmoth returned to The Oklahoman as energy editor in 2012 after working for four years in public relations. He previously spent seven years as a business reporter at The Oklahoman, including five years covering the state's energy sector....
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