Skip to comments.US shale oil supply shock shifts global power balance
Posted on 05/14/2013 8:25:13 AM PDT by Red Badger
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 (IEA).
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 Organization 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. Continue reading the main story Start Quote
The regional fallout from the 'Arab Spring' is taking a toll on investment and capacity growth
Meanwhile, global oil demand is set to increase by 8% which would be met mainly by non-Opec supplies, the report said
(Excerpt) Read more at bbc.co.uk ...
Let the Saudi’s wither on the vine.
Somehow I think our fearless leaders will screw it all up.
And I’m still paying $3.95 per gallon for gas this morning.
When the earth's molten inner core begins to cool, that's when oil reserves will vanish.
I agree. Arabs without oil (and oil money) are nothing more than camel jockeys. Let them all go back to the desert and pound sand.
That will happen, and after that, the world will become a little more sane.
My pet theory is, if you drill deep enough ANYWHERE, you will strike oil.........
[[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.]]
That’s fine, but hte fact is companies want to export the oil because it will getm orem oney overseas, which means that our prices here will also rise-
You are living in a fantasy world.
The temperatures and pressures at the levels of molten rock break down the long-chain hydrocarbons, they don’t form them. We do this every day in most of our refineries.
Wishing won’t make the physics and chemistry run backwards.
abiotic oil theories have produced cash from gullible investors and few countries, but has never been a source for commercial oil production.
Every wonder how that deep-earth theory matched the fact that all the world’s oil fields are sourced from sedimentary basins? And places like Hawaii where the crust has been pushed up from underneath has no oil production?
Do you honestly believe that OPEC imports oil to us today and we don't pay global market rates?
I am not a geologist. I just know that many of the wells we pumped dry in the early part of the last century are full again. That is especially true in California and Pennsylvania.
The drilling isn’t the problem- We’re suppsoedly ‘at capacity’ in regards to our refineries and what they can handle- the problem is two fold- congress has prevented the companies from making enough refineries- and 2 since we can’t refine anym ore, we are exportign oil because it getsm ore money overseas which raises price her too I guess- fro mwhat I understand of it
I’m talking abotu IF we becoem ‘energy indepedent’ Our congress is not goign to allow low energy prices for one, and two- companies will make morem oney exporting oil, which will raise prices here-
And you know that how?
If we are not paying market rates for the product, we won't be getting investors/oil companies spending money in this country to produce the product.
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