Dec 12 (Reuters) - North American liquids production is expected to rise by more than 40 percent between 2010 and 2040, driven by technological advancements that enable increased output from sources such as oil sands, Exxon Mobil Corp said on Thursday.
More of the world’s oil demand will be met by unconventional sources, which will make up nearly half of the liquids supply by 2040, the company said in its annual energy outlook.
Technological advancements such as hydraulic fracturing have led to an energy boom in the United States with soaring production from shale fields in Texas and North Dakota cutting the country’s dependence on energy imports.
Exxon, the world’s largest publicly traded oil company, also said it did not expect regulations on fracking to slow U.S. shale development.
“We do assume we will have continued access to unconventional resources, there is so much opportunity for unconventional resources, we don’t see any significant constraints in those areas where we are operating today,” William Colton, Exxon’s vice president of corporate strategic planning said at a meeting to discuss the outlook.
U.S. oil production hit its highest level in 25 years in November, averaging 8 million barrels per day, the U.S. Energy Information Administration said in its latest monthly short-term energy outlook.
Exxon reiterated on Thursday that it expected global energy demand to increase 35 percent between 2010 and 2040, driven by developing nations such as India and China.
Oil and natural gas is expected to continue to meet nearly 60 percent of global energy demand, Exxon said.
The company also forecast a surge in the number hybrid vehicles on world roads in coming years.
Efficiency for world’s car fleet is projected to climb to 46 miles per gallon, up from 24 miles per gallon in 2010.
Those gains reflect a surge in demand for hybrid vehicles, which are expected to account for half of global new car sales and will account for 35 percent of the world’s fleet by 2040, Exxon said.