US set to become net exporter of oil: IEA

Tuesday, March 12, 2019

Print this page Email A Friend!


Paris , France (AFP) — Crude production is set to continue expanding in the United States thanks to shale oil, with the country becoming a net exporter from 2021, a development which should reinforce global energy security, the IEA (International Energy Agency) said Monday.

“The second wave of the US shale revolution is coming,” Fatih Birol, the executive director of the International Energy Agency, said in a statement.

New technology that allows for extracting oil and gas from shale rock formations has led to a boom in oil production in the United States in recent years. With low production costs, that boom is set to continue.

The IEA forecasts the United States will account for two-thirds of the increase in global oil production and some three-quarters of the expansion of liquefied natural gas (LNG) over the next five years.

This will help the United States surpass Russia and nip at the heels of Saudi Arabia as the world's top exporter.

“This will shake up international oil and gas trade flows, with profound implications for the geopolitics of energy,” said Birol.

Rising US shale production was one of the main drivers in the collapse in oil prices in 2014, from which the oil industry is just recovering.

Production outside the Organization of Petroleum Exporting Countries oil cartel is set to continue rising, according to the IEA, which sees it climbing by 6.1 million barrels per day (mbd) to 68.7 mbd in 2024. In addition to the United States, both Brazil and Norway are expected to increase output.

Meanwhile, OPEC output is expected to dip in 2019 and 2020, before resuming modest growth to 32 mbd in 2024.

Overall, global output is expected to rise by 5.9 mbd by 2024, with output in Iran expected to drop due to US sanctions and Venezuela thanks to its deep economic crisis.

The IEA also sees growth in demand for oil to ease, in particular due to slowing expansion in China. Nevertheless, it sees demand increasing by an annual average of 1.2 mbd to 2024.

China and India will still account for nearly half of the global increase in oil demand, which is expected to rise by 7.1 mbd to 106.4 mbd in 2024.

Moreover, the IEA continues to see no peak in oil demand.

The petrochemicals sector and jet fuel will be the key drivers of growth, “more than offsetting a slowdown in gasoline due to efficiency gains and electric cars”, said the IEA.


Now you can read the Jamaica Observer ePaper anytime, anywhere. The Jamaica Observer ePaper is available to you at home or at work, and is the same edition as the printed copy available at http://bit.ly/epaperlive


ADVERTISEMENT




POST A COMMENT

HOUSE RULES

1. We welcome reader comments on the top stories of the day. Some comments may be republished on the website or in the newspaper � email addresses will not be published.

2. Please understand that comments are moderated and it is not always possible to publish all that have been submitted. We will, however, try to publish comments that are representative of all received.

3. We ask that comments are civil and free of libellous or hateful material. Also please stick to the topic under discussion.

4. Please do not write in block capitals since this makes your comment hard to read.

5. Please don't use the comments to advertise. However, our advertising department can be more than accommodating if emailed: advertising@jamaicaobserver.com.

6. If readers wish to report offensive comments, suggest a correction or share a story then please email: community@jamaicaobserver.com.

7. Lastly, read our Terms and Conditions and Privacy Policy



comments powered by Disqus
ADVERTISEMENT

Poll

ADVERTISEMENT
ADVERTISEMENT

Today's Cartoon

Click image to view full size editorial cartoon
ADVERTISEMENT