UPDATE 2-Exxon expects N. American liquids output to rise 40 pct by 2040

Thu Dec 12, 2013 1:17pm EST
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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.   Continued...