Russia » Economics
Author`s name Michael Simpson

American Oil Satisfies Just One Third of US Demand

Annual report of the US Department of Energy says that in the nearest 20 years the dependence of the US upon crude and oil products export will be increasing even faster than it has been predicted. According to expert forecasts, the share of imported oil in US's total consumption volume will increase from the 54 per cent fixed last year to 70 per cent by 2025.

The tendency is explained with the fact that the need of America's economy for oil is increasing faster than domestic oil production. What is more, experts forecast that US’s oil production will reduce in five years. The oil production will increase from the 5.6 million barrel a day fixed in 2002 to 6.1 million barrel a day in 2008, but then it will start declining and will make up 4.6 million barrel a day in 2025.

According to forecasts of the Department of Energy, import of energy resources will increase from the 26 per cent fixed in 2002 to 36 per cent in 2025. US's energy resources production will follow the same scenario that oil production: it will be on the rise before 2008 and then will gradually reduce. The report says, oil prices have increased from $23.68 to $27.25 per barrel within the past year. Oil prices will drop to $23.30 per barrel by 2005 and then will grow to $27 per barrel by 2025 (inflation is not taken into account).