US to Become World’s Largest Oil Producer within Decade - IEA
By Lianna Brinded | November 12, 2012 10:21 PM EST
The US will overtake Saudi Arabia as the world's largest oil producer within the next decade, the International Energy Agency's (IEA) predicted for the first time, as an oil and gas boom moves the world's biggest economy closer to energy self-sufficiency.
In its annual benchmark World Energy Outlook 2012 report, published Monday, the Agency says that the US will move to first place in world production, ahead of the so-called Swing producers Saudi Arabia and Russia, bringing about a "sea change" to the oil and gas market. A swing producer has the ability to change the price of oil on global markets by varying its supply.
The IEA says that the American oil and gas boom from so-called 'unconventional drilling' has changed the world's fuel market balance, and will make the United States a net exporter of natural gas by 2020. The US is also set to be almost self-sufficient, in net energy terms, by 2035, the Agency says.
"North America is at the forefront of a sweeping transformation in oil and gas production that will affect all regions of the world, yet the potential also exists for a similarly transformative shift in global energy efficiency," said Maria van der Hoeven the IEA's Executive Director.
The IEA says overall global oil demand will grow from the current 88 million barrels per day to more than 99 million barrels per day in 2035, by which time the IEA predicts that oil prices will reach $125 per barrel. Iraq will also overtake Russia and become the second-largest global oil exporter, after accounting for 45 percent of the growth in global oil production by 2035, it said.
The IEA report says the US's oil export advance will accelerate a switch in direction of international oil trade as the vast majority - almost 90 percent - of Middle Eastern oil exports will be sold to Asia by 2035.
In the gas markets, the Agency warns that while regional dynamics change, global energy demand will grow by more than one-third before 2035. China, India and the Middle East will comprise 60 percent of that growth, the Agency says.
While the regional picture for natural gas varies, the IEA says that nearly half of the increase in global production by 2035 will come from unconventional gas - including shale gas, controversially extracted from rocks deep in the ground through so-called 'fracking'.
Fossil fuels will remain dominant in the global energy mix, supported by subsidies that increased by almost 30 percent to $523bn last year, due mainly to increases in the Middle East and North Africa.
The IEA also adds that renewable energy sources are set to become the world's second-largest power generator by as early as 2015 and will challenge coal as the primary energy generation source by 2035.
To contact the editor, e-mail:
Most Popular Slideshows
- Angelina Jolie & Brad Pitt Heads to Malta For New Movie After A Whirlwind French Wedding [PHOTOS]
- Kate Middleton’s Mom Accused Of Being A Social Climber, Prince George Not Seen By Relatives
- Prince Harry & Camilla Thurlow Getting Serious, St. Tropez Holiday Before The Prince’s 30th Birthday [PHOTOS]
- Chris Martin Getting Serious With Jennifer Lawrence, Actress Joining Coldplay Tour [PHOTOS]
Join the Conversation
- Russia Invades Ukraine, Pro-Russian Rebels Create 'Second Front,' Obama Maintains No Military Action from US
- TEPCO Loses in Fukushima Suicide Case, Ordered to Pay $472,000 to Family
- Better Market Your Uranium Someplace Else, Japan Appetite No Longer Huge as Before – Former PM Tells Australia Queensland Premier Campbell Newman
- ISIS Wants $6.6M and Release of Aafia Siddiqui in Exchange of Head of Female US Humanitarian Aid Worker, 1st American Fighting for Jihadis Dead
- Product Recall Alert: Hewlett-Packard Pulls Out 6M Power Cords from US, Canada Over Fire Hazard Concerns, Australia Also Affected
- Sept 19 iPhone 6 Release Date Firms Up as iWatch Rollout Delayed to Jan 2015 – Reports
- Apple iOS 8 vs Android 5.0 L: OS Wars Puts Android to Lower while Apple to Higher
- North Korea Banker Who Manages Money of Kim Jong-un Defects to Russia With $5 Million
- Malaysia Airlines to Axe 4,000 Employees, Including CEO; Suspends Trading of Shares
- Nexus 4, Nexus 5, Nexus 7, Nexus 10 New Paranoid Android 4.5 Beta 2 Update Guide
- US And Australia Share Visa And Immigration Information
- Finally, OnePlus One Can Be Purchased Without An Invite; Pre-Order Starts From October