U.S. oil exporters who want to expand their footprint this year will need the help of petroleum engineering consultants, as the Energy Information Administration (EIA) expects the country to be a net energy exporter by 2022.
The EIA’s Annual Energy Outlook showed that rising shale production and weak local demand will fuel the growth of oil exports. Energy consumption nationwide would only increase to 0.4% by 2050, so oil and gas companies would have to look into overseas markets for business opportunities.
The EIA expected the U.S. to become a net energy exporter by 2026, but the pace of growth in production and domestic demand led it to revise its projections. EIA Administrator Linda Capuano said that the revision reflected “an incredible transformation” in the U.S. energy system.
The country would try to reclaim its net energy exporter status for the first time since 1953. If it succeeds, the EIA expects changes in trade patterns for global oil exports. A booming production indicated that trading has now shifted to the Middle East, according to the agency.
The U.S. government’s decision in 2015 to lift a ban on crude oil exports partly caused the shift in trade patterns. Recent data showed that exports reached 1.3 million barrels per day on average as the week ends on February 2. The figure represented more than double the figure in the same period last year.
This trend will only continue in the next several years, particularly for exports of liquefied natural gas. Shipments of LNG products (natural gas cooled to liquid form) would account for most of the overseas distribution beyond Canada and Mexico, possibly through 2050, according to the EIA.
A need to ensure the efficiency of operations at oil and gas mining fields becomes more necessary than ever. How do you plan to expand your energy exports in the future?