USA oil boom will not lower prices??

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Oil tanker at the Port of Long Beach, Calif.

The United States is awash in oil, yet analysts at RBC Capital Markets don't expect that to pull benchmark crude prices much lower.

In its five-year outlook, published Thursday, RBC analysts said soaring U.S. production will be absorbed by the rest of the world "with only modest price impact" over the next year. The world's largest economy is churning out record amounts of crude, and is mulling whether to export some of it abroad—something it hasn't done in decades.

Last month, the Energy Information Administration said the U.S. would pump huge amounts of oil and natural gas through at least 2016, with annual crude production challenging the 1970 record of 9.6 million barrels per day.

USA ENEGRY BOOM

America's energy boom will continue for decades, and natural gas will replace coal as the largest source of U.S. electricity by 2035, the Department of Energy forecast today.U.S. production of crude oil will increase through 2016, when it will approach the record set in 1970, before leveling off and then slowly declining after 2020. Natural gas production will grow steadily, jumping 56% from 2012 to 2040, according to an early release of an annual report by DOE's Energy Information Administration.

"Advanced technologies for crude oil and natural gas production are continuing to increase domestic supply and reshape the U.S. energy economy as well as expand the potential for U.S. natural gas exports," Adam Sieminski, EIA Administrator, said in releasing theAnnual Energy Outlook 2014.