CERAWeek: IEA forecasts second wave of US shale production
Oil production growth is expected in producing countries outside the Organization of Petroleum Exporting Countries through 2023, particularly US shale production, Fatih Birol, International Energy Agency executive director, said a news conference at CERAWeek by IHS Markit in Houston.
“A second major wave of US shale production is coming,” Birol said, which he attributed to higher oil prices.
He said robust oil demand growth is anticipated worldwide at $60/bbl for US light, sweet crude oil on the New York Mercantile Exchange.
IEA anticipates Venezuela’s production levels will continue falling, Birol said, adding IEA is closely monitoring oil output from Libya and Nigeria.
Investor interest is declining in Angola because of that’s nation’s aging field, Birol said.
Mexico’s production decline continues despite the nation’s ongoing energy reforms, but Birol said IEA expects Mexico’s production will start increasing by 2023-24.
“It will definitely happen,” Birol said of Mexico reversing its production decline.
Of oil demand growth, he said the main drivers will be China and India. The US will become the largest oil producer, but Saudi Arabia will remain the world’s largest oil exporter for years to come, he added.
He sees US and Australia natural gas as contributing to world LNG supplies.
Contact Paula Dittrick at [email protected].
Paula Dittrick | Senior Staff Writer
Paula Dittrick has covered oil and gas from Houston for more than 20 years. Starting in May 2007, she developed a health, safety, and environment beat for Oil & Gas Journal. Dittrick is familiar with the industry’s financial aspects. She also monitors issues associated with carbon sequestration and renewable energy.
Dittrick joined OGJ in February 2001. Previously, she worked for Dow Jones and United Press International. She began writing about oil and gas as UPI’s West Texas bureau chief during the 1980s. She earned a Bachelor’s of Science degree in journalism from the University of Nebraska in 1974.