Booming North American oil production is reshaping world markets and will help satisfy the growing thirst for oil in the developing world, according to the International Energy Agency.
“North America has set off a supply shock that is sending ripples throughout the world,” said IEA executive director Maria van der Hoeven. “This is helping to ease a market that was relatively tight for several years.”
Growing North American production will help the U.S. begin to meet its own energy demands, leading it to cut back on imports that will instead start flowing to emerging markets.
In its latest report, the Paris-based IEA forecasts that North America’s oil supply will grow by nearly 4 million barrels per day between 2012 to 2018, amounting to nearly 50% of global output growth over that period.
“The shock waves of rising U.S. shale gas, light tight oil and Canadian oil sands production are reaching virtually all recesses of the global oil market,” stated the IEA report.
The U.S. is experiencing an oil boom, in large part thanks to high world prices and new technologies, including hydraulic fracking, that have made the extraction of oil and gas from shale rock commercially viable.