US to become self-reliant for energy needs

THE US will become 99 per cent self-sufficient in its energy needs by 2030, with the shale gas revolution set to reinvigorate its economy, according to oil giant BP.

According to its Energy Outlook 2030 report yesterday, growing production and moderating demand will result in the US becoming almost completely self-sufficient in 17 years’ time.

BP’s prediction marks a steep uptick from 2005, when the nation was only 70 per cent self-reliant in terms of its energy production.

Major emerging economies such as China and India will become increasingly reliant on imported energy, a shift that will have “major impacts on trade balances”, it said.

By 2030, BP predicts, energy use in non-OECD countries will be 61 per cent higher than in 2011, compared to only a six per cent jump for OECD countries.

Meanwhile, increased production from unconventional sources of oil – tight oil, oil sands and biofuels – is expected to provide all of the net growth in global oil supply to 2020.

The London-listed oil behemoth yesterday predicted an almost 36 per cent increase in energy use between 2011 and 2030, far outstripping forecast population growth of 18.5 per cent to 8.3bn.