News

This week, the U.S. Energy Information Administration (EIA) released its annual International Energy Outlook, predicting international energy trends and demand through 2040. The report projects global energy use will increase 48 percent by 2040 and that liquid fuels (i.e. mostly oil) and natural gas will be the number one and number two sources of energy, respectively.  Of course, there’s no way to meet that demand without fracking so this is a pretty big wake up call for activists pushing the “Keep-It-In-The-Ground” agenda.

According to the report, consumption of natural gas worldwide is expected in increase from about 120 trillion cubic feet (Tcf) in 2012 to 203 Tcf in 2040 – an increase of almost 70 percent. As the report states fracking is essential to meet that need:

“The application of horizontal drilling and hydraulic fracturing technologies has made it possible to develop the U.S. shale gas resource, contributing to a near doubling of estimates for total U.S. technically recoverable natural gas resources over the past decade.”

The report continues,

“Shale gas accounts for more than half of U.S. natural gas production in the IEO2016 Reference case, and tight gas, shale gas, and coalbed methane resources in Canada and China account for about 80% of total production in 2040 in those countries.” (Emphasis added)

Worldwide consumption for liquid fuels (such as petroleum) produced from crude oil is set to soar as well. According to the report, global consumption of petroleum and other liquid fuels is projected to increase from 90 million barrels per day (b/d) in 2012 to 121 million b/d in 2040. Much of this demand will stem from Asian countries, specifically China, although the United States will continue to be the largest consumer of liquid fuels in the Organization for Economic Co-operation and Development (OECD) through 2040.

With EIA’s prediction that oil and natural gas will be the top two sources of en...