There is a common theme of surplus in US energy markets today with more natural gas, natural gas liquids (NGLs) and light sweet crude oil being produced than can be processed and consumed domestically. The likely destination of those surpluses is export markets – either directly or in the form of derivative products. How should we think about these exports in the context of “energy independence”? U.S. energy policy since the 1970s has been centered on the importance to national security of reducing dependence on foreign resources—the oft-touted, elusive goal of “energy independence.” Today we examine whether a btu energy balance is a practical and effective measure of energy independence.
On Monday I spoke at the Canadian Energy Research Institute’s (CERI) Crude Oil Conference in Calgary, Alberta. Presentation title: The Looming Imbalance - Supply/Demand Implications of the Shale Oil Revolution. Like most oil conferences these days, it was very well attended and included some high profile Canadian energy luminaries like Joe Oliver, Canada’s Minister of Natural Resources. As you might expect, this was a crowd very friendly to oil producers in general, and to oil sands production specifically. Have no doubt that Canada is going to increase production from oil sands by at least 1 MMb/d over the next 5 years whether the barrels come to the U.S, or not. It is a “national imperative”.
