What growing global oil thirst means for economy
A new International Energy Agency report out Tuesday says global oil demand will rise by 1.3 million barrels per day this year, higher than its previous forecast. That number tells a story about the global economy and will also have impact in America.
“It’s definitely a positive sign,” Fadel Gheit, an Oppenheimer managing director and senior energy analyst. “Higher demand for energy in general and for crude oil in particular is an indication the global economy is back on track.”
More oil demand means more shipping and more production and hopefully more jobs. On the down side, more oil use and production also means higher environmental impact.
America is having an oil boom, but energy companies can only profit so much. Current law allows export of only a tiny fraction of crude. As the domestic boom continues, expect a stronger push to change that.
“The producers who are producing that are saying, well, gosh, let us export,” explains Sarah Emerson, president of Energy Security Analysis, Inc. “So 2014, in that sense, is a bit of a tipping point.”
Now that America’s using more and more of its own oil, more companies here will be looking to sell abroad.
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