The US will become a net energy exporter by 2022, according to the EIA’s annual forecast. According to the institution’s assessment, the sector will be characterized by a strong increase in energy resource extraction, but against the backdrop of domestic demand will remain without major changes.
The US Energy Estimates forecast for 2050 is that average consumption growth will be at 0.4% per year. At the same time, the gross domestic product (GDP) growth will be between 1.7% and 2.6% per year.
The administration also said that gas and oil extraction would continue to grow. After 2022, most power plants in the country will use natural gas or renewable energy sources. This is the result of the low cost of natural gas and the cheaper technologies for RES installations.
The forecast also includes the expectation of a Brent oil price by 2050. The highest value would be 229 USD per barrel, and the lowest would be 52 USD per barrel. In the realistic scenario, the price of oil will be 114 USD per barrel by 2050.
The institution also notes that the price of oil will depend on the global situation, but the price of natural gas depends on what is happening on the domestic market in the United States.
In most scenarios, the extraction of energy raw materials will exceed demand and by 2022 the country will be a net exporter as long as prices are not at the bottom. But the US will continue to import oil as refineries in the country need different varieties to produce fuels.