The US can become a net energy exporter - June 24, 2018
The US can become a net energy exporter in 3 years if Bloomberg’s expectations become real. This could happen the first time since 1957. The reason is simple: energy production grows fast, while consumption remains mostly the same. Natural gas may have a leading role in all this.
By 2021 the United States can become a net energy exporter. This means that they will be able to generate more power than they are able to use.
Production and consumption
“U.S. energy production is booming, yet consumption has flat-lined”, writes Bloomberg Intelligence. They mention that the energy consumption is “unlikely to gain much with improved [GDP] growth” in the future, while in the past the two figures were closely connected. What’s more, while production increased 22% between 1999-2017, demand only grew 1% in the same period.
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This leads them to believe that by 2021, the country may produce more energy than it can consume. If the authors of the study take a less optimistic scenario of the growth, the balance between production and consumption would be reached by 2029. Whichever scenario proves right, that year would be the first time since 1957 that the balance was reached in the US.
Energy needs of the US
Just some weeks ago we wrote about how much energy the United States of America needs. They are the second biggest consumers globally, only outmatched by China. The US uses 97.7 Quads of energy per year, one quad equalling to 293,071,000,000 kilowatt-hours.
By 2021 the number will only go higher, but still, it could be the breath-taking amount produced by the United States alone. In this huge figure every type of energy is included, not only electricity. Energy generated or used by coal, fossil fuels and renewables are all added.
Gas is a leader
This is important as fossil fuels can become even more important. Especially natural gas, as it has the most important factor in reaching the balance. As Bloomberg put it: “natural-gas products are the greatest factor in the [production] rise, about 38% of the total”.
And the US indeed has a lot of fossil energy. We wrote about it in the past how the States may have the most oil globally. They have great amounts of shale oil and it’s becoming easier by the day to produce them. Easier also means cheaper production, making production worth it even more in the future. This could also help the US to generate even more energy in a profitable way in the future.
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