Tapping Shale Reserves, US Would Become World's Top Oil Producer By 2017

Hugh Pickens writes "The NY Times reports that according to a report by the International Energy Agency, the U.S. will overtake Saudi Arabia as the world's leading oil producer by about 2017, will become a net oil exporter by 2030, and will become 'all but self-sufficient' in meeting its energy needs in about two decades — a 'dramatic reversal of the trend' in most developed countries. 'The foundations of the global energy systems are shifting,' says Fatih Birol, chief economist at the Paris-based organization, which produces the annual World Energy Outlook. There are several components of the sudden shift in the world's energy supply, but the prime mover is a resurgence of oil and gas production in the United States, particularly the unlocking of new reserves of oil and gas found in shale rock. The widespread adoption of techniques like hydraulic fracturing and horizontal drilling has made those reserves much more accessible, and in the case of natural gas, resulted in a vast glut that has sent prices plunging. The agency's report was generally 'good news' for the United States says Michael A. Levi, senior fellow for energy and environment at the Council on Foreign Relations, because it highlights the nation's new sources of energy but Levi cautions that being self-sufficient does not mean that the country will be insulated from seesawing energy prices, since those oil prices are set by global markets. The message is more sobering for the planet, in terms of climate change. Although natural gas is frequently promoted for being relatively low in carbon emissions compared to oil or coal, the new global energy market could make it harder to prevent dangerous levels of warming (PDF). 'The report confirms that, given the current policies, we will blow past every safe target for emissions,' says Levi. 'This should put to rest the idea that the boom in natural gas will save us from that.'" The folks over at The Oil Drum aren't quite so optimistic: shale reserves may have an abysmal EROI. And, of course, Global Warming is a liberal myth.

Comments

There is NO SUCH THING as being self sufficient!

[arkham6]

I hate whenever i hear people say "Well, if we drilled more we could be self sufficient from foreign oil and have oil prices come down.

NO, it does not happen that way.

The US government does not drill oil. They lease out the mineral rights to companies such as shell, BP and Exxon who extract the oil and then __sell it on the world market__. Let me say that again. The oil goes into a central market and could be shipped anywhere if the costs are right. Just because its produced here does not mean it stays here.

Another example was Norway after Hurricane Katrina. Their oil and gas prices jumped significantly after the hurricane in the gulf, yet they are a major exporter and producer. Why? Because supply went down after the storm, so prices had to go up. It didnt matter that they got all their own oil, the world markets made the prices go up.