The U.S. as Global Oil Growth Supplier
Posted June 19, 2019
Another big indication of the global impact of the U.S. energy revolution comes in the International Energy Agency’s (IEA) oil market report and its outlook for 2020, which says the United States will be responsible for virtually all of this year’s increase in oil supply. From the report (emphasis added):
“Meeting the expected demand growth is unlikely to be a problem. Plentiful supply will be available from non-OPEC countries. The US will contribute 90% of this year’s 1.9 mb/d increase in supply …”
The fact that the U.S. is projected to fill this role is significant in terms of global market stability and the world’s security – that is, the United States as this growth supplier, versus less stable and/or less friendly regimes.
We’ve talked at length about the domestic benefits of the U.S. energy revolution. The U.S. is the world’s leading natural gas producer, leading oil producer and leading refiner, and that energy leadership means America is stronger, more secure and more prosperous. America’s energy abundance has produced lower energy costs for consumers and increased household disposable income, and the increased use of clean natural gas in generating the nation’s electricity is the leading reason the air Americans breathe is cleaner today than it has been since the turn of the century.
Of course, the benefits of the U.S. energy revolution are extending far beyond our shores, as indicated by IEA’s report. Connecting communities with energy and opportunity is a pillar of the natural gas and oil industry – and a mission made much easier through America’s growing capacity to share energy with the rest of the world, including many areas that haven’t benefited from abundant or reliable energy.
A good example is the increased availability, thanks to U.S. production, of liquefied petroleum gases (LPG), which is the most cost-effective way to address the lack of clean cooking fuels in Africa and other places. LPG is clearly preferable because it is cleaner that cooking with biomass. IEA’s World Energy Outlook discusses this in a number of sections. Again, this underscores the importance of supply – supply from the United States.
U.S. energy abundance is possible because our industry uses high-tech solutions to develop energy from places previously thought to be inaccessible – from shale and other tight-rock formations to deep-water regions far from the U.S. coastline. Energy makes modern, healthier living possible – keeping the lights on, serving as building blocks for countless products, and fueling the trains, planes and automobiles we rely on for mobility. U.S. energy abundance is exportable and offers the opportunity for others to know its benefits.
Here’s something else: America’s world leadership in natural gas and oil production is accompanied by world leadership in cutting greenhouse gas emissions. That’s because industry is actively addressing the complex global challenge of climate change through robust investments in technology innovation, efficiency improvements and cleaner fuels – and natural gas is driving U.S. energy-related carbon dioxide emissions to their lowest levels in a generation even while CO2 emissions around the globe have risen 50 percent since 1990.
Global oil demand is now more than 100 million barrels per day – and the U.S. shale revolution is the reason this demand is being met – fostering supply stability and, generally, a safer world. Bolstered by natural gas and innovation, the U.S. has proven that you can reduce emissions without sacrificing affordable energy, and our plentiful resources mean that these benefits can be extended throughout the world.
About The Author
Jessica Lutz is a writer for the American Petroleum Institute. Jessica joined API after 10+ years leading the in-house marketing and communications for non-profits and trade associations. A Michigan native, Jessica graduated from The University of Michigan with degrees in Communications and Political Science. She resides in London, and spends most of her free time trying to keep up with her energetic Giant Schnauzer, Jackson.