Breaking Away from Foreign Oil Dependence
The U.S’s foreign oil dependence has only worsened over the years, and is currently at a peak due to the huge consumption. How do we break away from this? How much foreign oil are we actually consuming? This is all good information to know if you a greatly invested in the U.S. oil market. Todd Ganos explains where this story may go and where we are currently at.
U.S. crude oil consumption is roughly 7 billion barrels per year, of which approximately 4.5 billion barrels is imported. Based on data from the U.S. Energy Information Administration, about 24 trillion cubic feet of natural gas per year would be needed to replace the 4.5 billion barrels per year we import.
The U.S. currently produces just under this amount each year. With an effective doubling of consumption of natural gas each year, an expansion of infrastructure would be needed. Such an expansion might take ten years to implement. But, it would be a shift from energy investment that we are already paying for outside the United States to energy investment inside the United States. This would likely have the effect of pulling jobs back into the U.S.
Various sources estimate that the U.S. has between 1.5 and 2.5 quadrillion cubic feet of natural gas reserves. If we were to assume its complete replacement of foreign oil, this translates to a 60 to 100-year supply. Tacking on the additional ten years for implementation, what might technology yield in the 2080 to 2120 timeframe? I posit that technology will yield a clean, green, cheap source of domestic energy that will once and for all put the issue to rest.
This article should give you a good idea about the current state of our oil consumption. It should also give you an idea about the next decade as well. This is all prediction, so take this as you will. But its worth your time to begin thinking about it!
Quotes taken from report by Todd Ganos, Read the entire article here.
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