The Department of Energy in Washington D.C. stated that the US met 83% of its energy needs in the first half of this year. The International Energy Agency believes that the US is on course to become almost self reliant or even a net exporter. This is of particular interest to investors as global demand for oil is expected to rise to nearly 100 million barrels per day by 2035 due to growth in the BRIC countries and elsewhere.
This may lead to a lower level of oil prices in the long term than expected as new sources of hydrocarbons such as shale gas and new extraction methods such as horizontal drilling lead to higher supplies than previously expected. It remains to be seen however, whether growing demand from developing countries will cancel this out and lead to the IEA’s prediction of oil at $125 a barrel by 2035.