EIA Forecast: Fossil Fuels Remain Dominant Through 2040

The Energy Information Administration (EIA) just released its Annual Energy Outlook 2014 with projections through 2040. Although there is a major push by the Obama Administration to make renewable energy the fuel of choice, fossil fuels supply 80 percent of the nation’s energy in 2040, slightly less than their 82 percent share in 2012. Renewable energy increases its share from 9.3 percent in 2012 to just 11.8 percent in 2040 despite the subsidies and mandates that they receive.

Oil Production
EIA projects that the production of crude oil and lease condensate will increase from 6.5 million barrels per day in 2012 to 9.6 million barrels per day in 2019, 22 percent higher than in last year’s forecast, as producers locate and target the sweet spots of plays currently under development and find additional tight formations that can be developed with the latest technologies. After 2019, domestic crude oil production declines, but remains at or above 7.5 million barrels per day through 2040. Tight oil production increases from 2.3 million barrels per day in 2012 (35 percent of total crude oil production) to 4.8 million barrels per day in 2021 (51 percent of the total). Tight oil production declines after 2021, as more development moves into less-productive areas. Offshore crude oil ranges between 1.6 and 2.0 million barrels per day from 2015 through 2040, as the pace of development activity quickens and new, large development projects, predominantly in the deepwater and ultra-deepwater portions of the Gulf of Mexico, are brought into production.

READ MORE:  http://www.instituteforenergyresearch.org/2013/12/17/eia-forecast-fossil-fuels-remain-dominant-through-2040/