As oil prices continue to remain low through high levels of production, oil and gas companies are looking towards the future of the industry. Also, Dominion Resources moves forward with planning a $5 billion Atlantic Coast pipeline.
According to the U.S. Energy Information Administration, shale oil production is predicted to reach 9.6 million barrels per day by 2019. The shale boom and fracking practices are noted as significant contributors to the surge in oil production, which is soon expected to top Saudi Arabia. “The U.S. oil supply estimate excludes biofuels, which, when added to the total, are widely believed to place the U.S. as the world’s biggest liquids producer above Saudi Arabia and Russia,” said Perkins and Edwardes-Evans.
U.S. crude oil prices have dropped to $80 a barrel since last June. Despite falling prices, David J. Lesar, chief executive officer of Halliburton Energy Services, remains optimistic of future changes in the market predicting prices to stay between $80 and $100 a barrel. “Despite what people are thinking, demand is creeping up, albeit at a lower rate than it has been,” said Lesar.
Dominion Resources, is in the process of planning a $5 billion pipeline that will run from West Virginia to North Carolina. The power and energy company must receive approval from 40 regulatory agencies before beginning construction. Through its preliminary filing with the Federal Energy Regulatory Commission, the new pipeline is expected to generate 17,240 jobs.
Lower oil prices have many concerned about the far-reaching impacts it could have on oil dependent economies throughout the U.S. Oil and gas companies looking to reduce costs are already cutting back on new developments. Experts believe that low oil prices may continue affecting the industry in addition to contributing to a slower growth rate in the U.S. “The recent price drop in global crude prices will only add to these financial challenges,” said Daniel Pratt.