The International Energy Agency (IEA) said the US oil production will meet the world’s increasing demands over the next five years.
According to the Agency’s forecast, the steady growth in world economy will lead to heavy oil consumption till 2023. The growing oil output in Canada, Brazil and Norway will potentially fulfil demands through 2020, reported CNBC.
IEA Executive Director Fatih Birol said, “Upstream investment shows little sign of recovering from its plunge in 2015-2016, which raises concerns about whether adequate supply will be available to offset natural field declines and meet robust demand growth after 2020.”
However, lack of investments could bring down the oil supply after 2020. There have been several rise and fall in global oil markets. Of the changes, the resurgence of US oil production marks a significant turn, Birol added. America’s rise in oil production is largely contributed to the use of advanced technology in major shale fields to yield oil and natural gas.
The IEA firmly believes the US is likely to pump 17mn barrels of crude oil per day. On the contrary, OPEC will grow its production capacity to just 750,000 barrels per day through 2023.
In the overall global output, 60% of the rise in production will belong to the US, the Agency said.