Monday, January 23, 2012

EIA Forecasts Shale Gas Production Will Continue Strong Growth, Double By 2035

The Annual Energy Outlook 2012 (AEO2012) Reference case was released today by the U.S. Energy Information Administration (EIA). This report presents updated projections for U.S. energy markets through 2035, and its projections include only the effects of policies that have been implemented in law or final regulations.

"Our updated Reference case projections show natural gas and renewables gaining an increasing share of U.S. electric power generation, domestic crude oil and natural gas production growing, reliance on imported oil decreasing, U.S. natural gas production exceeding consumption, and energy-related carbon dioxide emissions remaining below their 2005 level through 2035," said EIA Acting Administrator Howard Gruenspecht. "These projections reflect increased energy efficiency throughout the economy, updated assessments of energy technologies and domestic energy resources, the influence of evolving consumer preferences, and projected slow economic growth," said Gruenspecht.

Here are key projections for natural gas:

- Since 2000, shale gas production has increased 17-fold and now comprises about 30 percent of total U.S. dry gas production.
- U.S. shale gas production to double by 2035...to 49% of total domestic natural gas production.
- Between now and 2035 natural gas will remain stagnant in percent (25%) of total share of U.S. energy use.
- Electric power generation and industrial demand will drive future natural gas demand growth.

Click to read the press release.