The United States will drive global oil supply growth over the next five years, adding another 4 million barrels per day to the country’s already booming output, the International Energy Agency (IEA) said on Monday.
“The United States is increasingly leading the expansion in global oil supplies, with significant growth also seen among other non-OPEC producers, including Brazil, Norway and new producer Guyana,” the IEA said in its five-year outlook.
“By the end of the forecast (2024), oil exports from the United States will overtake Russia and close in on Saudi Arabia, bringing greater diversity of supply,” the IEA said.
Global oil demand growth is set to ease as China slows, but will still rise by an annual average of 1.2 million bpd to 2024.
“Still, the IEA continues to see no peak in oil demand, as petrochemicals and jet fuel remain the key drivers of growth, particularly in the United States and Asia, more than offsetting a slowdown in gasoline due to efficiency gains and electric cars,” the Paris-based IEA said.
It said Iraq would reinforce its position as a top producer, becoming the world’s third-largest source of new supply and driving growth within producer group OPEC.
“The increase will have to compensate for steep losses from Iran and Venezuela, as well as a still-fragile situation in Libya,” the IEA said.