The US will help meet most of the world’s new oil demand over the next five years, according to a new report – showing the impact of the shale revolution in the country.
The International Energy Agency (IEA) made the forecast in its annual ‘Medium-Term Oil Market Report’, which suggested North American oil production will transform the global market and reshape the way oil is transported, stored and refined. It forecasts North American supply to grow by 3.9 million barrels per day (mb/d) from 2012 to 2018.
Maria van der Hoeven, IEA’s Executive Director said: “North America has set off a supply shock that is sending ripples throughout the world. The good news is that this is helping to ease a market that was relatively tight for several years. The technology that unlocked the bonanza in places like North Dakota can and will be applied elsewhere, potentially leading to a broad reassessment of reserves. But as companies rethink their strategies and as emerging economies become the leading players in the refining and demand sectors, not everyone will be a winner.”
The report also predicted world liquid production capacity to grow by 8.4 mb/d – significantly faster than demand – which is projected to expand by 6.9 mb/d. Global refining capacity is also forecast to rise by 9.5 mb/d, led by China and the Middle East. Non-OECD economies are expected to overtake OECD nations in oil demand for the first time.