U.S. foresees greater energy independence

Jan 24 - USA TODAY

By Wendy Koch, USA TODAY

The nation will be more energy independent in the future as it boosts its production of oil, natural gas and renewable power such as solar and wind, the U.S. government predicted Monday.

Domestic crude oil production is expected to jump more than 20% in the coming decade, from 5.5 million barrels per day in 2010 to 6.7 million in 2020 -- a level not seen since 1994, says an annual forecast by the U.S. Energy Information Administration. Much of that growth comes from tight oil, forced out from shale rock in North Dakota's Bakken area.

Also, U.S. production of natural gas is projected to increase so much that it will exceed consumption early in the next decade. Renewables will take off, too, accounting for 16% of the U.S. electric supply in 2025 -- up from 10% today.

As a result, net imports of energy to the U.S. will account for 13% of total consumption in 2035, down from 22% in 2010.

The report comes within a week of the Obama administration's rejection of the 1,700-mile Keystone XL pipeline, which would carry tar sands from Canada to Gulf Coast refineries.

The U.S. will still depend on oil imports from the Persian Gulf, half of which Keystone XL could have replaced, says Rayola Dougher of the American Petroleum Institute, an industry group.

Daniel Weiss of the Center for American Progress, a think tank opposed to Keystone, says the report shows that the U.S. does not need the pipeline.

The report says U.S. demand for energy will continue to increase but at a slower pace because of efficiency advances. It projects the nation's energy-related carbon dioxide emissions will remain below 2005 levels for the next 25 years.