In 2040, domestic crude oil output will still be higher than it is today. Will the country’s shifting energy picture affect Keystone XL’s prospects?
By John H. Cushman Jr.
WASHINGTON—The U.S. Energy Department has sharply cut its forecast for crude oil imports in the next several years, saying that domestic oil will replace imports at a much faster rate than it expected just a few months ago.
Imports in 2016 will be one million barrels a day lower than it projected in April, the department’s Energy Information Administration (EIA) said Monday in its preliminary annual energy outlook for 2014 and beyond.
"With growth in both oil and natural gas production, we see the U.S. moving closer toward self-sufficiency, and there are some very interesting economic and geopolitical implications to all that," said Adam Sieminski, the EIA’s administrator, at a briefing.
The rapidly changing energy picture could relieve some of the pressure on President Obama to approve one major new conduit for crude oil imports, the Keystone XL pipeline. If built, the project would carry 860,000 barrels a day of crude oil, mostly from Canada’s tar sands, to U.S. refineries on the Texas coast, starting as early as 2016.
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