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Based on this official report extracted from EIA’swebsite, here are some of the major highlights included in AEO2014:
Natural gas and crude oil will continue to reshape the U.S. energy economy. Domestic crude oil production will continue its surge, adding another 800,000 barrels per day in 2014 and about the same number of barrels in 2015. By 2016, consumers could be looking at 9.5 million barrels per day, approaching the historical high of 9.6 million bpd back in 1970. Moreover, ongoing improvements in advanced technologies for crude oil and natural gas production will continue to lift domestic supply and reshape the country’s overall energy economy.
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Low natural gas prices will boost natural gas-intensive industries. The report insists that low natural gases will continue to boost the American industry, with the bulk of chemicals expected to grow by 3.4 percent per year to 2025. This implies that U.S. chemical industry will be about 45 percent bigger in volume 10 or 11 years from now.
Natural gas will replace coal as the largest source of U.S. electricity. By 2040, EIA predicts that natural gas will account for 35 percent of total electricity generation, while coal will account for 32 percent. In addition, the production of natural gas is also poised to increase 56 percent between 2012 and 2040.
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Dr. Ali Ghalambor has received various technical awards from the Society of Petroleum Engineers and the American Petroleum Institute. To learn more about his insights and expertise in the natural gas industry, visit this blog.