American oil imports to halve by end-2020

DAEGU, South Korea: Rising oil and gas production and improving energy efficiency in the US could slash its oil imports in half by the end of 2020 from levels seen two years ago, the West’s energy watchdog said.
The Paris-based International Energy Agency (IEA) earlier this month said the US would overtake Russia next year to become the world’s largest oil producer thanks to its shale oil boom.
Adding that development to energy savings from investments in efficiency will cut the need of the world’s largest oil consumer to rely on imported oils, the IEA said.
Earlier this month, the US government said the country had already ceded its ranking as top global oil importer to China.
In the report released at the World Energy Congress in South Korea, the IEA said the US has taken steps toward becoming one of the most energy efficient members of the Organization for Economic Co-operation and Development (OECD) by 2020.
Global energy efficiency markets around the world drew investment of up to $300 billion in 2011, a level on par with global investments in renewable energy or fossil-fuel power generation, the IEA noted in the report.
In 2010, IEA economies avoided burning 1.5 billion tons of oil equivalent thanks to efficiency improvements since 1974.
Leading US energy consultancy PIRA earlier said the US had overtaken Saudi Arabia to become the world’s biggest oil producer as the jump in output from shale plays has led to the second biggest oil boom in history.
US output, which includes natural gas liquids and biofuels, has swelled 3.2 million barrels per day (bpd) since 2009, the fastest expansion in production over a four-year period since a surge in Saudi Arabia’s output from 1970-1974, PIRA said in a release.
It was the latest milestone for the US oil sector caused by the shale revolution, which has upended global oil trade.
While still the largest consumer of fuel, the rise of cheap crude available to domestic refiners has turned the US into a significant exporter of gasoline and distillate fuels.
“(The US) growth rate is greater than the sum of the growth of the next nine fastest growing countries combined and has covered most of the world’s net demand growth over the past two years,” PIRA Energy Group wrote.
“The US position as the largest oil supplier in the world looks to be secure for many years,” it added.
Total liquids produced by the US, which PIRA defined broadly to include supplies such as crude oil, condensate, natural gas liquids and biofuels, should average 12.1 million bpd in 2013, pushing it ahead of Saudi Arabia.
Output from Saudi Arabia also rose last year, but the gains lagged those from the United States, the consultancy said.
PIRA said the increase in oil from shale, which has been centered in areas such as Eagle Ford in Texas and the Bakken in North Dakota, has seen US supply grow by 1 million bpd in 2012 and again 2013.
The US still lagged both Saudi Arabia and Russia in production of just crude oil by abut 3 million bpd, PIRA noted. Rounding out the top 10 oil suppliers were China, Canada, UAE, Iran, Iraq, Kuwait, and Mexico.