USA 10 years will dominate the global oil market

The United States will maintain a leading role in the global supply of oil in the next 10 years. This opinion was expressed by the head of the International energy Agency (IEA) Fatih Birol.

“The resource base in the United States is very large, the reserves of shale oil amount to at least 100 billion barrels. Oil production grew from 5.5 million barrels per day in 2010 to 12 million barrels per day in 2019,” – said the head of the IEA in an interview with RIA Novosti.

“In the next few years, the growth rate will slow down as soon as deposits are developed. And larger companies with a long-term perspective are beginning to play an increasing role in this sector,” said Birol.

“The price level will be a key growth factor, and since the US shale industry is very flexible and responds to price signals, the range of results for U.S. growth is very wide. There is no doubt that American mining is here to stay and will retain a leading role in world oil supply”, — said the head of the Agency.

Shale production in the US may fall

At the same time, experts believe that next year the growth of shale oil in the US may slow down more than 50%. The reason is that the investment discipline for the entities that invest in the oil shale industry, is increasing rapidly.

According to the energy information Administration (EIA) of U.S. Department of energy, in 2020 the production capacity will increase by 400 thousand barrels per day. This is the weakest growth, at least 2017, when production rose by 1 million barrels a day.

Especially in a tough economy of shale production will be the largest American – pool- Permian. This is because, as stocks of manufacturers are falling due to rampant production growth, which affects the incomes of investors.

Executives of companies such as Pioneer Natural Resources Co. and Centennial Resource Development Inc., now warn of a coming recession. And they are not alone. The international energy Agency has released similar forecasts.

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