Wood Mackenzie: North America energy independent by 2020

|By:, SA News Editor

North America will become "energy independent" by 2020 on the strength of the shale revolution and then become a net energy exporter, consultant Wood Mackenzie says in a new report.

North America’s energy independence will introduce a new dynamic to coal, oil and gas prices; coal and gas exports will establish a price cap on their respective markets during periods of high demand, and weak oil demand growth will see U.S. tight oil provide a price floor under crude markets.

The report says energy independence does not imply a North America entirely detached from global markets; the region as a whole will be dependent on others to clear excess production, and the U.S. will need to import oil for the foreseeable future.

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