Even Exxon thinks the US will cut energy use
The oil giant says even as output soars, greater fuel efficiency will drop usage 5% and carbon emissions 25% by 2040.
The company is now predicting a 5% drop in U.S. energy usage by 2040 and says increased vehicle fuel efficiency should drive the decline. At the same time, Exxon posits that rising reliance on natural gas and renewable energy resources like wind will reduce carbon emissions 25% during that span. By 2040, emissions should be at their lowest level since the 1970s.
However, the energy giant also assumes that North American oil and natural gas production will rise 45% over the same span and turn North America into a net energy exporter by 2025. Now, before Americans get all Gus Van Zant about the impact of "fracking" used to extract natural gas, the U.S. should calm down and understand that it may not even be the country leading North America's energy charge.
Sure, Exxon is eying the Gulf of Mexico for increased drilling, but it's those Canadian oil sands in Alberta that are making the "peak oil" folks revise their numbers a bit. Back in 2005, Exxon Mobil itself admitted that "all the easy oil and gas in the world has pretty much been found." The Association for the Study of Peak Oil and Gas agrees that discovery of new oil is decreasing, but oil companies note that it's conventional oil that's getting hard to find. "Unconventional" oil, like that found in oil sands or oil shales that takes a whole lot more effort to extract, is actually getting more common.
For example, the Bakken shale formation sitting beneath North Dakota, Montana, Saskatchewan and Manitoba has been estimated to contain anywhere from 4 billion to 150 billion barrels of oil (although current extraction methods provide access to less than 10% of it). And oil sands just beneath Edmonton in Alberta hold an estimated 175 billion barrels, making it the third-largest oil reserve in the world.
Right now, all of that energy is pretty tough to extract, which makes it really costly once it does reach the market. If Exxon is banking on it to bolster future supplies, however, that 5% cutback in U.S. energy use may underestimate the frugal nature of the cash-strapped American consumer.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The stock market ended the holiday-shortened week on a mixed note as the Dow Jones Industrial Average shed 0.1%, while the S&P 500 added 0.1% with seven sectors posting gains.
Equity indices faced an uphill climb from the opening bell after disappointing quarterly results from Google (GOOG 536.10, -20.44) and IBM (IBM 190.04, -6.36) weighed on the early sentiment. Google reported earnings $0.15 below the Capital IQ consensus estimate on revenue of $15.42 ... More
More Market News
Serious issues like drought and the deterioration of the developed world spell opportunity for this industry leader.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'