US to Overtake Saudi as Largest Oil Producer
By: A transformation in our oil and gas production is leading to a sea change that will put the U.S. at the head of the line in global oil production by the end of the decade.
For many years, the concentration of the world's oil production has been in Saudi Arabia. With production at 11 million barrels per day, the country is America's second largest exporter after Canada. But the International Energy Agency says the U.S. will overtake Saudi Arabia as the world's largest producer by 2020.
By 2035, our reliance on Middle Eastern oil will be virtually non-existent as America will have become self-sufficient in our energy needs.
How will we get there? While conventional sources of oil and gasoline have already begun to taper off, it is the production of unconventional sources of oil and gas that will free America from a reliance on foreign energy. (Read More: Gas Boost Makes US More Competitive Than Europe)
The IEA projects nearly half of the increase in global production to 2035 will come from unconventional gas, with a majority coming from the U.S. In fact, the U.S. will have become a net exporter of natural gas by 2020, according to the agency.
By bolstering and diversifying sources of oil and natural gas, we'll also see more diverse trade flows as 90 percent of oil exports from the Middle East will go Asia by 2035.
—By CNBC's Sharon Epperson; Follow Her on Twitter @sharon_epperson
