IEA ex­pects shale surge to be­come big­gest oil and gas boom in his­tory

Business World - - THE ECONOMY -

THE SUP­PLY SURGE from US shale oil and gas will beat the big­gest gains seen in the his­tory of the in­dus­try, the International En­ergy Agency (IEA) pre­dicted.

By 2025, the growth in Amer­i­can oil pro­duc­tion will equal that achieved by Saudi Ara­bia at the height of its ex­pan­sion, and in­creases in nat­u­ral gas will sur­pass those of the for­mer Soviet Union, the agency said in its an­nual World En­ergy Out­look.

The boom will turn the US, still among the big­gest oil im­porters, into a net ex­porter of fos­sil fu­els.

“The im­pli­ca­tions of the shale rev­o­lu­tion for international mar­kets and en­ergy se­cu­rity have been pro­found,” said the Paris-based IEA, which ad­vises most of the world’s ma­jor economies on en­ergy pol­icy. US drillers have “weath­ered the tur­bu­lent pe­riod of lower oil prices since 2014 with re­mark­able for­ti­tude.”

While oil prices have re­cov­ered to a two-year high above $60 a bar­rel, they’re still about half the level traded ear­lier this decade, as the global mar­ket strug­gles to ab­sorb the scale of the US bo­nanza. It’s taken the Or­ga­ni­za­tion of the Petroleum Ex­port­ing Coun­tries and Rus­sia al­most 11 months of pro­duc­tion cuts to clear up some of the over­sup­ply. —

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