Rising Global Oil Demand and the Case for Increased U.S. Production Amidst Energy Policy Debate
Global oil demand is still on an upward trajectory as the International Energy Agency (IEA) expects it to rise to 1.2 million barrels per day (bpd). Pointing to macroeconomic challenges, the agency increased its 2024 growth projection from 130,000 bpd to 180,000 bpd. Despite the administration’s host of de-facto mandates and hostile energy policies, the U.S. should meet this projected demand supply global demand with our domestic resources.
The Organization of the Petroleum Exporting Countries (OPEC) also projects oil demand to rise, despite backlash from environmentalists. OPEC attributes this primarily to overall economic expansion across the globe, estimating that oil demand will increase to 1.8 million bpd by 2025. This anticipated growth in demand is, in part, due to expectations of a robust economic performance from China, as it uses more and more energy. If the U.S. continues to pursue poor energy policies, such as a potential LNG export permit ban, it will lead our nation—and allies—to rely on foreign sources of energy.
The persistence of oil as a cornerstone of global energy consumption cannot be understated. Investing strategically in oil and natural gas production will benefit Americans, and those we export our energy to. It’s imperative that we build out supporting energy infrastructure in the U.S. rather than shut down and delay vital projects.
Our country is at a crossroads. We can secure our nation’s energy security by prioritizing our country’s domestic resources. Instead, we are opting down a road that will kill American jobs, outsource our businesses and deepen our reliance on foreign energy. It’s clear that oil demand is only increasing and if the U.S. continues to go down this path, significant ramifications may follow.