According to Houston, the International Energy Agency (IEA) predicts that the United States will drive and lead the growth of global oil supply in the next five years, increasing the country’s already rapidly growing oil production by another 4 million barrels a day.
The IEA said that by 2024, U.S. oil production will rise from 15.5 million barrels a day last year to 19.6 million barrels. Total crude oil exports will double, which will lead to more intense competition in the global market, especially in Asia.
This prospect suggests that demand from the Organization of Petroleum Exporting Countries (OPEC) will be under pressure as the United States and other competitors expand their crude oil supply. However, the International Energy Agency believes that global oil demand has not yet peaked, which will boost the confidence of oil producers.
In its five-year outlook report, the IEA, which advises the United States and other industrialized countries on energy, said: “The United States is increasingly leading the growth of global oil supply, and oil production in other non-OPEC oil-producing countries has increased significantly, including Brazil, Norway and Guyana, the new oil-producing country.”
The US oil boom over shale oil runs counter to OPEC’s and its Russian-led partners’efforts to limit supply. The so-called OPEC + Group started a new round of cuts in oil supply in 2019 to support oil prices.