US becoming energy-sufficient?
With news making headlines that the United States is becoming an energy-sufficient country, speculations started to stir if the U.S. is going to become disengaged from the question of global energy security.
In his remarks at the 5th World Liquefied Natural Gas (LNG) Series in Singapore, US Director Richard W. Westerdale, II of
of the Office of Policy Analysis and Public Diplomacy addressed the issued by saying that it is absolutely in US self-interest to remain engaged in discussions and efforts to further global energy security.
“The answer is no. Oil is a global commodity. Natural gas is increasingly becoming a global commodity.” -Mr. Westerdale
He explains that any supply disruption will increase global prices and the price American people pay for energy at home.
He notes that any disruptions would also undermine the economies and well-being of countries around the world, and thereby have a direct impact on the prosperity of Americans as well.
“Thus, increased energy self-sufficiency does not change the United States’ commitment to global security, to peace and stability in the Middle East, and to the security of our international transit routes.” – Mr. Westerdale
US becoming energy self-sufficient?
According to Mr. Westerdale, the US may overtake Saudi Arabia as the world’s largest producer of oil by the end of the decade.
He reports that U.S. oil production is up more than 35% over the last five years.
“It’s up over a million barrels per day over the past year alone.” – Ms. Westerdale
He says if one join that reality with measures to increase efficiency and to reduce consumption, today the U.S. depends on imports for less than 33% of its oil, according to the Energy Information Administration’s Short Term Outlook report released this month.
He adds that figure was 60% in 2006.
Report also reveals U.S. oil imports have fallen to their lowest level since 1987 and as a share of total U.S. consumption have dropped from a 60 percent in 2005 to below 40 percent today.
US production of natural gas increasing as well
Mr. Westerdale says the US has increased its production of natural gas by 25% over the past five years.
He says this is a result of the shale revolution which has shown us that it is possible to have a radical transformation in the way that oil and gas are produced.
This transformation has meant that, rather than talking about importing natural gas to help meet U.S. energy needs, experts now report we have sufficient domestic gas supplies to last more than 250 years, he stressed.
Shift has been even more dramatic for natural gas
In the 2005 before the gas boom experts predicted that U.S. LNG imports would rise to 180 billion cubic meters by 2025.
New study shows the U.S. Energy Information Administration now predicts that U.S. gas production will exceed consumption before 2020.
United States cannot successfully guarantee global energy security, efficiency, and market stability on its own
US has pointed out that America’s growing energy self-sufficiency raises a number of geo-political and geo-economic questions.
US developments in energy production present enormous opportunities not just for strengthening the U.S. economy, and reducing U.S. financial outflows, but also for enabling the United States to pursue new kinds of energy diplomacy.
US has said that the world’s new energy geography and increased American self-sufficiency should not be seen in the United States or abroad as foreshadowing, or justifying, an American pullback from the rest of the world.
US believes in an interdependent global economy, with interdependent energy markets where energy shortages, price volatility, or disruptions anywhere can also threaten economic growth everywhere.