U.S. Forecasts Natural Gas Boom Through 2040
The production of both oil and natural gas is now booming in the United States, but a new 30-year federal forecast sees a falloff in oil after 2020. It expects no slowdown for natural gas.
America’s energy boom will continue for decades, and natural gas will replace coal as the largest source of U.S. electricity by 2035, the Department of Energy forecast today.
U.S. production of crude oil will increase through 2016, when it will approach the record set in 1970, before leveling off and then slowly declining after 2020. Natural gas production will grow steadily, jumping 56% from 2012 to 2040, according to an early release of an annual report by DOE’s Energy Information Administration.
“Advanced technologies for crude oil and natural gas production are continuing to increase domestic supply and reshape the U.S. energy economy as well as expand the potential for U.S. natural gas exports,” Adam Sieminski, EIA Administrator, said in releasing the Annual Energy Outlook 2014.
This energy bonanza is largely due to the combined use of horizontal drilling and hydraulic fracturing or fracking, which releases oil and gas from shale deposits by blasting chemical-laced water underground to break up the rock. Yet fracking faces growing criticism as some scientists link leftover fracking fluids to groundwater contamination.
EIA’s 2014 forecast says low prices will make natural gas increasingly attractive so in some areas, it will replace power once supplied by nuclear or coal plants. In 2040, it expects natural gas will account for 35% of the nation’s electricity generation while coal will account for 32%.