BAKU, Azerbaijan, June 12. Spare oil production capacity can reach highest level in history, said Fatih Birol, Executive Director of IEA, during the launch of the Oil 2024 report, Trend reports.
“We are seeing a strong growth of supply coming from Americas, basically, so-called non-OPEC countries, namely, the United States, Canada, Brazil, Guyana. The growth coming from the non-OPEC supply, especially from Americas, are higher than the global oil demand that we expect. This would have implications for all the producers and consumers around the world. One of the implications with the current policies in place, is current rather high spare oil production capacity of about 6 million barrels per day will continue to increase and towards the 2030s will reach around 8 million barrels per day. It might be one of the highest in the history,” he said.
Birol believes that if such a development occurs, it will have implications on the prices, markets, and all the producers will be affected, including the shale producers in the US.
“We are going to see some important changes in the oil markets. But, of course, these are based on the policies that the governments have today. If the policies change in this or that direction, they may have an impact on our numbers. It there are major geopolitical crises, this could have an implication on oil markets,” added IEA’s executive director.
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