Demand for petroleum in the U.S. reached a 10-year high in October, after deliveries surged 1.1% year over year to an average 19.9 million barrels per day, according to the American Petroleum Institute (API).
A report showed that the figure represented the highest number for the month since 2007. While crude oil output remained high, the country became more energy independent, as petroleum imports dropped 0.8% to average just above 9.6 million barrels per day.
The API’s report somehow reflected the International Energy Agency’s (IEA) outlook for the U.S. as a dominant player in the global oil industry. For the ninth consecutive month in 2017, crude oil production reached more than nine million barrels per day. If the trend becomes stable, the IEA believes that the U.S. will account for 80% of the increase in global oil supply by 2025.
For this reason, energy companies should invest in storage solutions such as aboveground tanks, particularly those that comply with API 653 tank alteration standards.
Shale oil production in the U.S. by 2025 will be similar to the output of Saudi Arabia between 1966 and 1981, according to the IEA. Its World Energy Outlook lifted its initial forecast for U.S. output by 34% to nine million barrels per day, while shale oil that can be technically recovered will consist of 105 billion barrels.
The growing dominance of the country will also help lower prices, which would reach $83 per barrel for 2025. Global oil consumption will reach more than 100 million barrels per day by that year, mainly because of China surpassing the U.S. as the biggest consumer, according to the forecast.
It remains to be seen whether the IEA’s forecast will indeed materialize, yet the API’s report indicated that growth prospects are somehow positive for the U.S. oil and gas industry.