The Impact of US Oil Independence
The US focus on increasing it’s energy self sufficiency due to the rising level of production of gas, from sources such as shale, existing field tight gas, blended ethanol and other renewable sources will in turn impact on world oil and gas prices, commodities and the value of the US Dollar and other currencies.
The EIA reports on the US dependence on imported petroleum liquids declining by more than 1 million barrels per day by 2020, with the fracking production of gas to increase US reserves to around the 100 year level.
It is anticipated that Australia will become the largest energy exporter in the major industrialised economies with the potential to ship LNG, coal uranium and oil to the Asian economies
With the US not as dependent on Middle Eastern crude, China and Europe, along with Japan, Korea and India could become major users. But with the value of the Dollar on the increase, oil prices will not necessarily rise as many projections forecast, while renewables are therefore likely to remain uncompetitive and need subsidies for longer.