U.S. Oil Production to Shock Global Energy Markets: IEA Report

[FBaggins]

The boom in North American energy (primarily related to shale in the US and oil sands in Canada) is one of the biggest stories in the global economy. A new report from The International Energy Agency (IEA) agency discusses the consequences of the boom in dramatic fashion, arguing that it's as big of a deal for the world oil market as the rise of China was over the last 15 years.

The report describes the U.S. supply "shock" as that is sending "ripples" throughout the world, affecting every aspect of the market.

http://finance.yahoo.com/blogs/daily-ticker/u-oil-production-shock-global-energy-markets-iea-142157377.html

From the report (emphasis mine):

The supply shock created by a surge in North American oil production will be as transformative to the market over the next five years as was the rise of Chinese demand over the last 15, the International Energy Agency (IEA) said in its annual Medium-Term Oil Market Report (MTOMR) released today. The shift will not only cause oil companies to overhaul their global investment strategies, but also reshape the way oil is transported, stored and refined.

...snip...

“North America has set off a supply shock that is sending ripples throughout the world,” said IEA Executive Director Maria van der Hoeven, who launched the report at the Platts Crude Oil Summit in London. “The good news is that this is helping to ease a market that was relatively tight for several years. The technology that unlocked the bonanza in places like North Dakota can and will be applied elsewhere, potentially leading to a broad reassessment of reserves. But as companies rethink their strategies, and as emerging economies become the leading players in the refining and demand sectors, not everyone will be a winner.”

While geopolitical risks abound, market fundamentals suggest a more comfortable global oil supply/demand balance over the next five years. The MTOMR forecasts North American supply to grow by 3.9 million barrels per day (mb/d) from 2012 to 2018, or nearly two-thirds of total forecast non-OPEC supply growth of 6 mb/d. World liquid production capacity is expected to grow by 8.4 mb/d – significantly faster than demand – which is projected to expand by 6.9 mb/d. Global refining capacity will post even steeper growth, surging by 9.5 mb/d, led by China and the Middle East.


http://www.iea.org/newsroomandevents/pressreleases/2013/may/name,38080,en.html

[upaloopa]

1. Drill baby drill

Still the tea party idiots say the tree huggers won't let us drill in this country.

[clarice]

2. Drill on, brotha! nt

[dixiegrrrrl]

3. Such a deal. And only half the country will be environmentally decimated

so oil producers of OUR oil can make a killing.

[Champion Jack]

4. Great, Poison our water so that multi national corporations can make a profit