Dive Brief:
- Increased demand from electricity generation will drive American natural gas production in 2015 and make the U.S. a world leader in the resource, the chief economist of a major oil and gas trade association says.
- The United States has "vaulted" past Russia as the world's largest producer of natural gas and will be a net exporter within a decade, according to the American Petroleum Institute (API). Gas represented 28% of U.S. energy consumption in 2012 and is expected to grow to 30% by 2040, the Energy Information Agency reports.
- API called for expedited approval of liquefied natural gas export terminals saying development of unconventional energy resources is a "substantial driver of job growth and a more prosperous economic environment," Platts reports.
Dive Insight:
“America’s emergence as a global energy leader has fundamentally reordered the world’s energy markets, by elevating the importance of North American energy production and reducing what had been the dominant roles of OPEC and Russia," API president and CEO Jack Gerard said during the group's Fifth Annual State of American Energy event.
According to a report released by API, hydraulic fracturing is also driving greater personal income, government revenue and domestic economic growth. "The average U.S. household enjoyed an additional $1,200 in disposable income in 2012 from lower energy costs thanks to hydraulic fracturing — a total expected to grow to $3,500 in 2025," API said.
Development of shale resources added $284 billion to U.S. GDP in 2012, API estimated, and is expected to grow to $533 billion by 2025. "Furthermore, the incredible success of shale gas development has sharply reduced electricity and natural gas costs for local communities across the country," the report said.
