U.S. set to become biggest oil producer in the world and actually begin EXPORTING (so why is gas $4 a gallon?)

By Anthony Bond

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The U.S. will become the world's biggest oil producer before 2020 and will be energy independent 10 years later, it has been predicted.

The International Energy Agency (IEA) said that a resurgence in oil and gas production, coupled with improvements to the transport system, are gradually reshaping the energy market in the U.S.

By 2030, North America would be a net exporter of oil, the Paris-based IEA said.

Boost: The U.S. will become the world's biggest oil producer before 2020 and will be energy independent 10 years later, it has been predicted

Boost: The U.S. will become the world's biggest oil producer before 2020 and will be energy independent 10 years later, it has been predicted

The IEA, as reported by CNNMoney, said: 'The United States, which currently imports around 20 per cent of its total energy needs, becomes all but self sufficient in net terms - a dramatic reversal of the trend seen in most other energy importing countries'.

The U.S. is currently enjoying a boost in its oil fortunes thanks to new technologies and high prices worldwide.

The new technologies include hydraulic fracking which make the extraction of oil and gas from shale rock commercially viable.

 

Figures from 2008 to 2011 show that U.S. crude oil production rose 14 per cent with natural gas production increasing 10 per cent over the same time.

The IEA says U.S. natural gas prices will jump from this year's figure of $3.5 per million British thermal units to $5.5 per MBtu in 2020.

'In our projections, 93 per cent of the natural gas produced in the United States remains available to meet domestic demand,' it said. 

Increase: This graph shows the IEA's estimates for U.S. oil and gas production up to 2030

Increase: This graph shows the IEA's estimates for U.S. oil and gas production up to 2030

'Exports on the scale that we project would not play a large role in domestic price setting.'

It is expected this boost in North America's oil production will lead to a change in the direction of international oil trade towards Asia.

Global energy demand is expected to increase by more than a third by 2035 - with much of the growth coming from India, China and the Middle East.

World average oil import prices could then be pushed up to $125 per barrel by 2035 - compared to $100 per barrel currently.

 

The comments below have not been moderated.

And I'm not talking about the average. I'm just telling you what it was in my home town.

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- Grasshopper Farmer, Sandburrville, 11/14/12, 4: It was between 4-5 years ago. Im sorry for the date confusion but in my state at the time it was under 2 dollars when Obama took office.

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It was 1.40 a gallon 5 years ago- Yankee Doodle, United States of America, ---------------------------------------------------------------- According to the US Energy Information Administration the average price of gasoline for the week ending November 12, 2007 was $3.11, the following week it dropped to $3.09. Not so easy to make stuff up in the internet era is it?

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It was 1.40 a gallon 5 years ago

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Oh you poor things. You have to pay 66p a litre. - Francis, Herts, 11/14/12, 6:55 AM We are not used to the high prices. So we complain. We are lucky I suppose it's that "cheap". But to us it is not cheap.

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Gas is 3.25 here.

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Why is gas $4 a gallon? Because Obama has the treasury printing more and more money to pay the bills with. Thus devaluing the dollar on the world market. Oil is a world traded commodity so that is the first place the devaluing of the dollar will show up. The US needs to put an end to it's reckless government spending or we will end up like Greece.

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the us should conserve its oil thru higher taxes and not export it wor waste but conserve it for the future when prices really do rocket

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For years the US was a massive importer of the world's oil all the while 'sitting' on their oil fields. Now that the Middle East is starting to run out the US will be able to sell to the highest bidder and therefore hold the world to 'ransom'

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the U.S. should immediately adopt the pickens ( t boone pickens) plan to convert large trucks and government fleets to natural gas. that would drive down the price of gasoline for motorists at the pump and jump start the economy. no more middle east oil wars please!

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