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Growing supplies of oil, natural gas, and liquefied natural gas (LNG) are influencing the U.S. The net imports of crude and refined products in 2005 were the greatest since the 1970s. The U.S. Energy Information Administration (EIA) estimates that the U.S. net crude oil imports will average about 66.5 million barrels per day in 2005 and will decline in 2006 to 64.5 million barrels per day.EIA expects relatively high domestic production of crude oil and gasoline between 2007 and 2010.
Domestic crude oil production is expected to average about 7.7 million barrels per day during 2005 and rise to an average of about 7.9 million barrels per day in 2006. However, crude oil output growth will slow slightly in the following three years. Domestic crude oil production, which has been rising, reached 9.3 million barrels per day in 2005. Crude oil output in 2005 was the second highest in the last 35 years.
The trend of increasing domestic production is expected to continue through 2018. Projected growth in domestic production will steadily slide from 5.4 percent growth in 2005 to about 3.3 percent growth between 2006-2008 and almost flat growth through 2018. Imports are expected to decline through 2018 and then level off.
As crude oil and other fuels supply tightens and prices rise, U.S. dock workers will shift their focus to shippers that use LNG and other types of imported fuels. As domestic supplies of crude oil and other fuels grow, the Energy Information Administration projects that the United Nation’s (UN) expected net imports of crude oil and other fuels in 2005 will grow to an average of 51.8 million barrels per day, rather than 47.4 million barrels per day.
“Until 2006, the United States has a significant advantage in building LNG terminals,” says Energy Information Administration (EIA) analyst Brian Maxwell. “However, after 2006, the global LNG industry will need to catch up, and the United States will have to compete with India, South Korea, and China for LNG investment. If the United States can invest more in the infrastructure needed to import LNG and other fuels, the security of U.S. energy supplies will improve.”