Industry experts predict global demand will continue to rise through 2040, and that the U.S. will become the world leader in oil and natural gas production. With its abundance of unconventional oil and natural gas formations, and technical expertise, Oklahoma is uniquely prepared to step up to meet growing demand. Horizontal drilling and other advancements have increased efficiencies to the point where U.S. petroleum output will soon be the largest of any country in history.
WHAT’S DRIVING DEMAND?
With coal on the decline and solar facing significant infrastructure challenges, demand for oil and natural gas is predicted to sharply increase for at least the next 20 years. By 2022, the IEA predicts the world’s three largest liquid natural gas (LNG) exporters will be the U.S., Australia and Qatar. Expanding economies in Asian countries are largely responsible for growing petroleum demand, accounting for 70 percent of imports by 2040.
OKLAHOMA IS READY.
Oil and natural gas prices have risen 30 percent since June, which is great news for Oklahoma for several reasons. Rig counts and land leases have jumped sharply in recent months in the state’s SCOOP and STACK plays in south-central Oklahoma – a good sign that activity will be sustained for years to come. With abundant resources and greater efficiencies, Oklahoma companies have never been better positioned to meet rising demand.
PIPELINES AND PROXIMITY ARE KEY.
Close proximity to pipelines is another big advantage for Oklahoma. Cushing, Okla., best known as the pipeline crossroads of the world, stores up to 50 million barrels of oil each day and has vital links to oil and natural gas refineries and shipping ports in the gulf and other areas. A Houston-based company, Cheniere, is working on a pipeline that would connect the SCOOP and STACK areas to LNG export facilities in Louisiana.
As oil and natural gas production continue to rise over the next 20 years, Oklahoma has the opportunity to play an increasingly critical role in meeting the need. Keep up with the latest industry news at EnergyHQ.com.