You know the story: The United States is “addicted” to foreign oil. Has been for decades – and will be for decades to come.
Or will it?
A new report confidently forecasts that America is about to kick the habit.
And its “rehab” comes in the form of shale oil and natural gas.
I’m surprised the news has flown under the radar, because I think it warrants more attention. So allow me…
Goodbye, Middle East…
Imagine a world where the United States – fearing oil supplies either being cut off or its prices spiking enormously – no longer has to get involved in Middle Eastern geopolitical strife.
A world where it can basically say “get lost” to those who hold America to ransom over oil supplies.
According to a new report from BP (NYSE: BP), the United States has so much access to shale oil and gas from within America, Canada and Brazil that, “plus a gradual decline in demand, [we] would see North America become almost totally energy self-sufficient.”
And it’ll happen by 2030.
If BP’s forecasts hold true, it would shake up the world energy order.
The company goes on to state that natural gas supplies are so abundant, it will lead to a fall in U.S. oil imports – to the point where America will actually become a net gas exporter during that time. And China will replace the United States as the world’s leading energy importer.
…And Goodbye, Demand
In addition to bigger energy supplies, BP says a shift in global demand will be of additional help to America.
Even as energy demand is set to rise by 39% across the world over the next 20 years, it’s no surprise to learn that much of it will come from both strong GDP and population growth in Asia and other developing regions.
In fact, usage from the 30 countries in the Organization for Economic Cooperation and Development (OECD) will rise by just 4%, according to the Guardian. Moreover, greater energy efficiency and use of alternative/renewable energy will offset the upswing.
While fossil fuels will still dominate the energy demand landscape, the number will actually drop by about 6% to just over 80%.
And because China and India combined will account for over one-third of the world’s population, GDP and energy demand by 2030, BP says it’s them who’ll “depend increasingly on the Middle East for its growing oil requirements.”
So where should investors look in this shifting climate?
Simply put, companies involved with alternative sources of power generation. Namely, the nuclear and hydroelectric sectors, which the Guardian says will make up over half the growth in the area.
P.S. So what do you think? Could the United States really be energy self-sufficient by 2030? Let us know your thoughts – we’d love to hear from you. Find us on Google+, Facebook and Twitter, or leave a comment below.