USA leads World in Oil & Gas Production as China becomes the Biggest Consumer
The International Energy Agency (IAE) has released its annual energy forecast and it looks like there could be some major upheavals as the US of A once again lays claim to the title of world’s largest hydrocarbon producer, and China takes on the mantel of world’s biggest hydrocarbon consumer.
The IAE is predicting that world consumption will surge by at least another 30% by 2040, largely driven by higher consumption in China and India, both of whom are battling terrible problems with smog in their capital cities. Usage of renewable resources will also increase in importance and market share during the same period.
The IEA, which tracks the energy usage of a mere 29 countries worldwide, says that the US of A, which was once completely dependent on imports, has stemmed the tide of shipments to the country, and is now once again a major exporter and the undisputed global oil and gas leader. It is anticipated that the US of A will supply at least 80% of the increase in global demand from its oil shale activity.
A blot on the landscape.
The forecast recognises that the resurgence of the US of A is due to the remarkable ability of producers to unlock new resources cost-effectively, and the country will soon produce more oil and gas than any other country in history. Of course, whilst this may please rednecks and economists alike, it is not going to sit well with the hemp-trouser-wearing economists and sage grouse fans who will have to accept a high level of fracking activity and the ensuing earthquakes associated with it.
China may not be happy with the title of largest consumer, but government initiatives there have at least slowed the rate of increase from the 8% experienced between 2000 and 2012 to a more manageable 2% since 2012. However, the country is still on track to have a higher per capita energy consumption than Europe by 2040.