The International Energy Agency (IEA) reported in 2018 that the United States became the world’s largest producer of oil, surpassing that of rival oil producers Saudi Arabia and Russia. Additionally, the United States also became a net exporter of oil in 2018, a distinction not held in 75 years. With US production ramping up and global demand continuing to rise, the US will soon become the world’s largest exporter of oil and supplier of global energy.
US daily oil exports currently at 3.6 million barrels per day is expected to nearly triple to 9 million barrels a day by 2024.
During this period global demand is expected to witness significant increase primarily fueled by emerging and developing economies rapid technology-driven growth with the risk of global energy demand exceeding global output unless action is taking now.
The United States is forecast to provide 70 percent of the rise in global oil production and 75 percent of the rise in natural gas by 2024. This dramatic shift in supply growth will witness financial windfalls for US producers and their partners which will exceed that witnessed by the middle east in the 1970s and will have profound and dramatic implications for the geopolitics of energy.
The transportation sector will remain the largest consumer of oil while global population powerhouses China and India will witness automobile ownership rise from a combined 200 million cars to over 735 million cars in the decade ahead.
In recent weeks, Exxon Mobile, British Petroleum and Chevron Phillips all announced a significant increase in production in their efforts to meet future global demand. In 2018, IEA warned of global shortfalls unless producers invest now to meet demand.