US to increase oil productionThe United States is expected to overtake Saudi Arabia as the world's largest oil producer, by 2020, as new exploration developments have made it easier to find more of the natural resource. By 2035, the country is expected to become energy-independent, according to the International Energy Agency.

With the rise of technology such as hydraulic fracking, it has become more profitable for companies to attempt to extract oil from shale rock, a process that was previously too difficult to be considered commercially viable.

Changes in procurement and supply chains
The United States' increasing role on the global energy stage will be significant for American businesses, and many will find that rather than importing oil, they are able to get it from domestic suppliers. This may allow some companies to enjoy significant cost savings because they will no longer need to have the resource shipped from overseas to a U.S. port, then transported by truck to a manufacturing facility that could be halfway across the country. The logistical and supply chain issues that come with overseas oil procurement will also lessen, as corporations will be able to purchase oil drilled in the U.S. rather than deal with complex shipping operations resulting from obtaining oil from the Middle East.

As the U.S. increases its production, it will change how global supply chains currently operate. With more oil coming from refineries at home, Fox News reported that Middle Eastern oil exports will change and head more frequently to Asia rather than Western nations.

Difference in demand
Some companies could also begin to see a change in their oil supply chains because the demand for oil exports may increase drastically. As demand in Asia, the Middle East and India increases, companies in the U.S. could be shipping a significant amount of oil overseas to satisfy foreign demand. Fox News reported that about 60 percent of the increase in oil demand will come from these areas.

Will sustainable energy matter?
Even with government subsidies going to support green technologies and consumers taking an interest in sustainable energy, this may not have a great impact if U.S. oil production increases as much as anticipated. With plentiful oil available domestically and companies beginning to increase their drilling, green technology could be put to the side for a time. Companies may benefit from the cost reduction associated with using affordable fuel that can be supplied quickly in the short term, rather than investing in sustainable energy in the near future.
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