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US Expected To Overtake Saudi Arabia In Oil Production

November 12, 2012, 12:00 PM
Shutterstock_102708536

Article written by guest writer Kecia Lynn

What's the Latest Development?

The International Energy Agency (IEA), which advises 28 nations on energy policies, said today in its annual World Energy Outlook report that, thanks to increased development of its domestic oil reserves, the US is poised to take over from Saudi Arabia as the world's top oil producer, eventually pumping over 11 million barrels of oil per day by 2020. The report also forecasts that the Gulf nation will regain its #1 status by 2030, when its stocks should again surpass those of the US.

What's the Big Idea?

The very possibility of a shift in dominance "is of course a major development and definitely will have significant implications," according to IEA chief economist Fatih Birol. Combined with a drop in oil imports due to stricter fuel efficiency standards, the US seems to be on track towards its long-standing goal of energy self-sufficiency, which the report calls "a dramatic reversal of the trend seen in most other energy-importing countries." The report also forecasts that Iraq will become the world's second-largest oil exporter in 2020, overtaking Russia.

Photo Credit: Shutterstock.com

 

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