The U.S. Energy Information Administration is “quite prepared” to review how American exports of crude oil would affect global markets as domestic production is expected to reach about 10 million barrels a day by 2017, agency Administrator Adam Sieminski said.
A boom in oil production from the shale formations of North Dakota and Texas has the U.S. on a course to cut its reliance on imported crude oil to about 42 percent this year, the lowest level in two decades.
The U.S. might consider exporting light, sweet crude to Mexico in a swap for heavy crude, Adam Sieminski, administrator of the U.S. Energy Information Administration, said today at a conference in Houston.
The Energy Information Administration slashed its estimate of recoverable reserves from California’s Monterey Shale by 96 percent, saying oil from the largest U.S. formation will be harder to extract than previously anticipated.
Adam Sieminski, head of the U.S. Energy Information Administration, said falling costs for wind power will make the alternate energy competitive with natural gas and coal, spurring expansion in the next two decades.
Oil skeptics like to point out that the U.S. consumes 20 percent of the world’s oil but owns only 2 percent of global reserves. Such lopsided numbers, they insist, destine the U.S. to depend on foreign crude -- unless it slashes its consumption and embraces alternatives. Lately, though, a surge in U.S. oil production appears to have turned the tables.
Oil prices may reach $100 a barrel by 2015, Adam Sieminski, chief energy economist at Deutsche Bank, said today at a conference in Houston. Natural-gas prices might reach $6 per million British thermal units in that timeframe, he said.