US could become an energy exporter by 2020, report says

Oil and natural gas exports are expected to rise over the next five years

(Getty Images)

The US could export more energy than it imports as early as 2020, according to a new report, which would have a tremendous impact on the country’s economy.

The report from the Energy Information Administration claims that even though oil prices have fallen sharply in the past year the US still will increase its oil and natural gas production over the next five years.

The US has been a net-importer of energy since the 1950s, but the EIA report says it expects exports to surpass imports earlier than 2030 and possibly as early as 2020.

“Advanced technologies are reshaping the U.S. energy economy,” Adam Sieminski, EIA administrator, told the Wall Street Journal. “The projections show the potential to eliminate net U.S. energy imports in the 2020 to 2030 time frame.”

In order for the US to become a net-exporter of energy by 2020, oil prices likely would need to spike. Higher oil prices encourage a higher level of production.

But several factors other than oil prices figure to factor into the US switch from net-importer to net-exporter. Mr Sieminski said more widespread use of renewable energy and more fuel-efficient cars will help reach that goal.

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