US to become top producer of oil & gas and self-sufficient in energy

Says a new report from the IEA..

What does this mean for alternative and renewable energy and climate change?

Renewables become the world’s second-largest source of power generation by 2015 and close in on coal as the primary source by 2035. However, this rapid increase hinges critically on continued subsidies. In 2011, these subsidies (including for biofuels) amounted to $88 billion, but over the period to 2035 need to amount to $4.8 trillion; over half of this has already been committed to existing projects or is needed to meet 2020 targets

“The report confirms that, given the current policies, we will blow past every safe target for emissions,” Mr. Levi said. “This should put to rest the idea that the boom in natural gas will save us from that.”

What does it mean for the geopolitics of the world?  Who knows!

http://www.nytimes.com/2012/11/13/business/energy-environment/report-sees-us-as-top-oil-producer-in-5-years.html

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2 Responses to US to become top producer of oil & gas and self-sufficient in energy

  1. Paul says:

    according to this (http://www.eenews.net/energywire/2012/11/14/2), these estimates assume that the US will drill and tap ALL available reserves… probably not going to happen..

    “To bring this up to a 100-year supply, companies would have to drill across the entire U.S. outer continental shelf and other areas, including the Great Lakes, the report finds.”

  2. Paul says:

    Here is more skepticism of these claims:
    “In a Nov. 15 note to clients, Deutsche Bank’s Paul Sankey argued that the law of supply and demand will prevent the US from ever surpassing Saudi production. Sankey said that domestic American politics will prevent the US producers from being able to export their oil and will thus isolate the surging crude oil production largely within the nation’s borders. Currently, the federal government must approve oil and gas exports. When this supply overwhelms American demand, the price of US-benchmark WTI crude will drop, making further production uneconomical and effectively capping US production before it ever reaches Saudi levels. “The growth cannot be sustained,” Sankey said.”
    http://thebreakthrough.org/index.php/programs/energy-and-climate/follow-the-shale-gas-leader/

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