Baku, Azerbaijan, March 11
By Leman Zeynalova – Trend:
As a result of its strong oil production growth, the United States will become a net oil exporter in 2021, as its crude and products exports exceed its imports, Trend reports citing the International Energy Agency (IEA).
“The transformation of the United States into a major exporter is another consequence of its shale revolution. Greater US exports to global markets strengthen oil security around the world. Buyers of crude oil, particularly in Asia, where demand is growing fastest, have a wider choice of suppliers. This gives them more operational and trading flexibility, reducing their reliance on traditional, long term supply contracts,” reads the Oil 2019 report released by the IEA.
The United States continues to dominate supply growth in the medium term, according to the report.
“Following the unprecedented expansion seen in 2018, when total liquids production increased by a record 2.2 million barrels per day (mb/d), the United States will account for 70 percent of the increase in global production capacity until 2024, adding a total of 4 mb/d,” said IEA.
“Important contributions will also come from other non-OPEC countries, including Brazil, Canada, a resurgent Norway, and newcomer Guyana, which together add another 2.6 mb/d in the next five years. In total, non-OPEC production is set to increase by 6.1 mb/d through to 2024,” reads the report. “ Among OPEC countries, only Iraq and the United Arab Emirates have significant plans to increase capacity. These gains have to offset steep losses from Iran and Venezuela, which are subject to sanctions and political or economic turmoil. As a result, OPEC’s effective production capacity falls by 0.4 mb/d by 2024.”
---
Follow the author on Twitter: @Lyaman_Zeyn