NEW YORK — A steeper-than-expected rise in US shale oil reserves is about to change the global balance of power between new and existing producers, a report says.
Over the next five years, the US will account for a third of new oil supplies, according to the International Energy Agency.
The US will change from the world’s leading importer of oil to a net exporter.
Demand for oil from Middle-East oil producers is set to slow as a result.
“North America has set off a supply shock that is sending ripples throughout the world,” said IEA executive director Maria van der Hoeven.
The surge in US production will reshape the whole industry, according to the IEA, which made the prediction in its closely-watched bi-annual report examining trends in oil supply and demand over the next five years.
The IEA said it expected the US to overtake Russia as the world’s biggest gas producer by 2015 and to become “all but self-sufficient” in its energy needs by about 2035.
The rise in US production means the world’s reliance on oil from traditional oil producing countries in the Middle East, which make up OPEC (the Organisation of the Petroleum Exporting Countries), would end soon, according to the report.
US production is set to grow by 3.9 million barrels of oil per day (bpd) from 2012 to 2018, accounting for some two-thirds of the predicted growth in traditional non-Opec production, according to the IEA.
Meanwhile, global oil demand is set to increase by eight per cent which would be met mainly by non-Opec supplies, the report said. (BBC)