US Aims to Be Key Source of Global Energy Supplies

By Florence Tan and Henning Gloystein
Tuesday, October 30, 2018

The United States will become a key source of energy supplies to meet growing demand globally, with innovation in technology and financing set to boost U.S. oil and gas production in the next decade, the country's top energy diplomat said.

"In the next 5-10 years, we expect to see improved recovery rates and even a doubling in some of our most prolific (gas) basins," said Frank Fannon, assistant secretary in the energy bureau of the U.S. state department.

"What this means in the near-term is that the United States may double production, double export capacity and introduce new market innovation," he said at an industry conference in Singapore.

Fatih Birol, executive director of the International Energy Agency (IEA), said at the same event that the United States would become the "undisputed leader" of global oil and gas production.

In oil, the United States crude production overtook that of top exporter Saudi Arabia earlier this year, recently hitting a record 11 million barrels per day (bpd), putting the United States within reach of top producer Russia.

Largely thanks to the U.S. increase, crude output from the world's top 3 producers reached 33 million bpd for the first time in September, Refinitiv Eikon data showed.

That's an increase of 10 million bpd since the start of the decade and means that these three producers alone now meet a third of global crude demand.

In gas, the IEA's Birol said the United States, together with Australia and Qatar would supply 60 percent of global liquefied natural gas (LNG) by 2023.

The U.S. currently only has two LNG export projects operational, although several are waiting for financial approval.


(Reporting by Florence Tan and Henning Gloystein; Editing by Joseph Radford)

Categories: Technology Energy LNG Government Update Shale Oil & Gas North America Government

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