According to the International Energy Agency (IEA), United States is going to start export oil more than Russia, and it’s a threat for the KSA as the US is going to become the world’s top oil exporter by 2024 overcoming Saudi Arabia.
The forecast from the IEA comes just a few weeks after the United States exported 3.6 million barrels of crude-oil per day which a convincing itself. Moreover, the state exports also petroleum products of five million bpd containing refined fuels such as gasoline. In the yearly five-year oil outlook IEA said that those shipments would rush in the upcoming years as production of crude oil from the shale fields of the nation continues to boom. An advisor to oil producers and consumers from Paris taking the United States crude output already at a record twelve million bpd, rising by an additional four million bpd up-to 2024.
Faith Birol about US 2nd Shale Revolution Wave
Faith Birol, International Energy Agency Executive Director, stated that the second wave of the United States shale revolution is approaching. The U.S. accounts for 70% of the rise in worldwide production of oil, and few seventy-five percent of the expansion in trade of LNG will see in the upcoming five years. It will surely stir the international trade flows of gas and oil along with profound implications for the geopolitics of energy.
US beats Saudi Arabia and Russia as Oil Producer
In 2018, the United States beat Russia and Saudi Arabia to become the biggest oil producer worldwide. Moving forward in the market of export would additionally erode their presence in the market of oil. In recent years, coordinating production of oil between OPEC and other oil-producing states, Russians and Saudis have made an alliance. The supposed alliance plus OPEC has overlaid output for about last two years, assisting to boost the prices of oil afterward punishing downturn.
IEA adds, over the next five years most of the output progress from OPEC comes from Iraq. International Energy Agency has faith that Iraq will become the third most significant source of new supply all over the world which will help for the offset production drops in Venezuela and Iran. In the group’s views, the world will want that supply.
IEA thinks that there are no signs that the growing demand for oil will peak in the upcoming years. During the coming five years, the appetite of the world for oil will rise with an average of 1.2 million bpd, approximately in line with current trends of growth. Whereas, it also seen by IEA that electric cars and fuel efficiency draining gasoline demands. Even the growing petrochemicals and fuel consumption of jets will balance somewhat weakness at the pump. In addition to Iraq and the United States, the group sees the countries such as Norway, Guyana, and Brazil fulfilling the oil demands.