Over 100 U.S. executives from leading energy companies believe U.S. energy independence could happen in the next 16 years, according to a survey conducted by KBMG, LLP. Adding credibility to this report, Ernst and Young says that oil and gas reserves were up nine percent last year thanks to independents and North Dakota needs more oil pipelines to keep up with the pace of production.
The U.S. will be energy independent by 2030, according to executives that participated in a KPMG International survey. Seventy-three percent surveyed believe that it may take 16 years or less to accomplish this feat. The surveyed comprised of over 100 executives from global energy companies. “Exciting new breakthroughs are leading to a whole new generation of domestic oil and gas production, particularly from deepwater, oil sands and shale assets,” John Kunasek, national sector leader for energy and natural resources for KPMG LLP, said in the statement.
U.S. oil and gas reserves were up nine percent in 2013 thanks to independent producers, not the majors, according to a report from EY. Oil reserves are up 52% since 2009 and most of these gains are the result of the independents’ efforts in the numerous shale plays around the country. “In shale plays, it’s important to have economies of scale,” according to Herb Listen, U.S. oil and gas assurance leader at EY. ”What we found is independents and large independents are a bit more nimble at being able to get it, acquire the acreage, and build their footprint,” Listen said.
North Dakota needs more oil pipelines, according to the state’s Governor Jack Dalrymple. The governor said that more pipelines will cut the number of trucks on the road, reduce natural gas flaring, and deliver his state’s oil and gas to more markets. ND is currently the number two oil producer behind Texas and with 17,500 miles of pipeline already, they continue to add about 2,500 per year.
The price of Brent crude has fallen three times in the past four days. Production in Iraq, despite militant fighting, has been mostly unaffected according to Mark Shenk of Bloomberg. Iraq has pledged to increase production and exports to ease concerns of potential price hikes. “The geopolitical situation isn’t improving but the Iraqis are continuing to pump oil and say they intend to increase shipments,” said Phil Flynn, senior market analyst at the Price Futures Group in Chicago.