Bloomberg – The global oil market is expected to grow at an annualized annual rate of about 6 percent this year, a figure that is likely to surpass the 5 percent pace of growth the U.S. Energy Information Administration forecasts in its annual Energy Outlook.
Oil and gas prices have surged since the U of A. study found that oil and natural gas exploration has tripled over the past decade.
The price of crude oil has surged by more than 40 percent in the past year.
A $8 trillion oil andgas market is forecast to grow by about 6% this year.
That compares to the 5% annual growth rate the EIA forecasts for the U, U.K. and Australia.
The EIA projects oil and mineral resources will grow by 7.3 percent this quarter, up from 7.2 percent last year, and by 7 percent in 2020.
“Investment in oil and minerals will be driven by the need for higher crude prices and by lower exploration costs,” the EIS says.
The EIA says oil and energy companies are using about a third of their revenue to fund exploration and development.