According to a report by the International Energy Agency, the United States could overtake Saudi Arabia in oil production over the course of the next decade making the world’s biggest consumer of the natural resource close to being self sufficient.
New drilling techniques such as horizontal drilling and the growing supply of crude extracted from tight underground rock formations is set to sling shot the States into the top spot for oil production and extraction.
“The United States, which currently imports around 20 percent of its total energy needs, becomes all but self- sufficient,” the IEA said. That’s “a dramatic reversal of the trend seen in most other energy-importing countries.”
The IEA also said that the USA met up to 83% of its energy needs in the first six months of this year and the nation’s rising ability to increase domestic production will enable the States to cut its dependence on foreign oil imports with the potential to insulate its supply from outside factors.
The growing tensions with Iran saw all imports from that country banned that reduced shipments from a country that was until then the second-biggest producer in OPEC. Global demand for oil is projected to rise to 99.7 million barrels a day in 2035, up from 87.4 million last year, according to the IEA.
Today is a quiet day for the American currency as the nation’s markets are closed due to the Veteran’s Day Bank Holiday. Any US Dollar data will be influenced by announcements out of the Eurozone, particularly those regarding the debt situation in Spain and Greece.
Traders should also keep an eye out for the latest retail sales, Core retail sales and PPI figures due to be released on Wednesday. Thursday will also be an active day for the markets with the CPI, Unemployment claims and manufacturing index all due to for release.
The Pound to Euro exchange rate is currently trading at 1.2478
The Pound to US Dollar exchange rate is currently trading at 1.5883
The Pound to Australian Dollar exchange rate is currently trading at 1.5229
The Euro to US Dollar exchange rate is currently trading at 1.2725
The Euro to Pound exchange rate is currently trading at 0.8011
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