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