Oil & Gas Market

Domestic energy supplies cannot support domestic energy demands and current global supply is now having trouble keeping pace with global demand. Support for this position is now reflected in the current price of oil and gas.

The United States is the world's largest consumer of oil, and currently imports almost 60% of its oil from foreign countries. (footnote: Department of Energy January 2005 Country Analysis Brief.) Many of these imports come from OPEC countries some of which are in the volatile Middle East.

According to the U S Department of Energy, U S oil production has been declining since 1985 and is currently at a 50 year low. As the world's largest economy, the United States is naturally the biggest consumer of oil.

US oil usage is expected to grow at a sustained rate of 1.5% annually from a current estimated usage of over 20 million barrels of oil per day to 27.9 million a day by 2025. Global consumption is approaching 80 million barrels per day and is growing at an annualized rate of 2.3% per annum which means a doubling in 30 years.

Our reliance on foreign oil is increasingly risky and can be diminished by increasing our domestic production as much as possible.