Breaking energy industry records in 2018... and beyond
As the old saying goes, all records are made to be broken. And in 2018 the United States shattered old records and set new ones across the entire energy landscape. Tune in to the video below to hear insights from John Schultz, President of Direct Energy Business, a leading energy and energy-related services supplier in North America.
United States Energy Production
United States crude oil production topped out at a record 10.7 million barrels per day, putting the country firmly among world leaders, Saudi Arabia and Russia.
“This is actually quite significant for the overall energy picture for the U.S.,” President of Direct Energy Business John Schultz says. “I think that’s one of the big news stories of 2018 that seems to get lost today.”
It’s the first time since 1970 that the United States has reached such high levels, and the EIA projects we could reach up to 11 million barrels per day by the end of 2019, pushing the U.S. into the number one producing spot.
In terms of domestic natural gas production, the U.S. finished 2018 averaging close to 81 billion cubic feet per day, up almost 10 percent from 2017, an all-time record in the U.S.
Last year’s reign as natural gas king could be short-lived, however, as energy experts expect production to meet and beat last year’s numbers with projections coming in at 83-84 billion cubic feet per day in 2019. This increase in natural gas production has pushed the U.S. into new territory on the world stage.
“Last year  we were right on the cusp,” Schultz says. “In 2018, we officially crossed over and became a net exporter of natural gas for the first time in 60 years, and the production increasing this year has only fueled that. The U.S. exported about two billion cubic feet of natural gas per day in 2018 with the expectation for 2019 to be closer to 5.5 cubic feet per day.”
United States Energy Prices
There’s ample supply of natural gas in the U.S. at around $3.00 – 3.50 MMBtu. This price works in just about every market in the world when you add transport costs.
“If you think about taking that gas, drilling it, producing it, transporting it to the U.S. Gulf Coast where we liquify it and then put it on ships that carry it around the world, even with those transport costs, the economics work,” Schultz says. “We can land in Asia, South America and Europe and still return a great profit.”
Energy Industry Frontier in 2019
With all this progress over the past calendar year, where will the industry going in 2019 and beyond? In short, it appears the future is bright.
“Increasingly in the U.S., we’re going to start talking about the global demand for natural gas influencing our domestic supply picture. I think that is quite significant,” Schultz remarks. “In fact, the Department of Energy recently released a projection for the United States to be a net energy exporter by 2020, another substantial development for our industry.”
With service to 200,000 customers, including 78 percent of Fortune 100® companies across 24 U.S. markets and five Canadian provinces, Direct Energy Business is helping commercial and industrial operations plan ahead for that future. Customers are positioned to take command of their energy spend and usage with electricity and natural gas solutions that are customized for their unique footprints and specific needs.
To learn more about energy solutions for your commercial and industrial operation, check out Direct Energy Business strategies online or call 855-399-9741 to get a customized quote.