79.7 F
Fort Worth
Tuesday, September 29, 2020
- Advertisements -
Energy U.S. oil boom causing energy upheaval

U.S. oil boom causing energy upheaval

Other News

Closing prices for crude oil, gold and other commodities

The Associated Press Benchmark U.S. crude oil for September delivery rose 31 cents to settle at $41.60 a barrel Monday. Brent crude...

Trump to discuss energy, tour oil rig, raise money in Texas

By DARLENE SUPERVILLE Associated PressWASHINGTON (AP) — President Donald Trump will shift his focus to American energy dominance during a stop in...

Basic Energy Services makes organizational changes

Fort Worth-based Basic Energy Services, Inc. (OTCQX: BASX) in late May announced the implementation of changes to the organizational structure of the...

Texas oil producers were cutting output before Railroad Commission chose not to, Commissioner Christi Craddick says

By Cassandra PollockMay 12, 2020 Texas Railroad Commissioner Christi Craddick on Tuesday doubled down on the agency’s recent decision...
Robert Francis
Robert Francis
Robert is a Fort Worth native and longtime editor of the Fort Worth Business Press. He is a former president of the local Society of Professional Journalists and was a freelancer for a variety of newspapers, weeklies and magazines, including American Way, BrandWeek and InformatonWeek. A graduate of TCU, Robert has held a variety of writing and editing positions at publications such as the Grand Prairie Daily News and InfoWorld. He is also a musician and playwright.

Alanna Petroff

LONDON (CNNMoney) — Booming North American oil production is reshaping world markets and will help satisfy the growing thirst for oil in the developing world, according to the International Energy Agency.

“North America has set off a supply shock that is sending ripples throughout the world,” said IEA executive director Maria van der Hoeven. “This is helping to ease a market that was relatively tight for several years.”

Growing North American production will help the U.S. begin to meet its own energy demands, leading it to cut back on imports that will instead start flowing to emerging markets.

In its latest report, the Paris-based IEA forecasts that North America’s oil supply will grow by nearly 4 million barrels per day between 2012 to 2018, amounting to nearly 50% of global output growth over that period.

“The shock waves of rising U.S. shale gas, light tight oil and Canadian oil sands production are reaching virtually all recesses of the global oil market,” stated the IEA report.

The U.S. is experiencing an oil boom, in large part thanks to high world prices and new technologies, including hydraulic fracking, that have made the extraction of oil and gas from shale rock commercially viable.

The new supply surge comes as developing nations are set to consume more oil than developed countries for the first time.

The IEA says the shift will be seen this quarter, with demand from developing countries hitting 54% of the global total by 2018, up from 49% in 2012.

The country leading this move is China, the world’s second largest consumer after the U.S., which has been guzzling oil at an ever faster rate. The report forecasts that Chinese demand for oil will rise by 25% between 2012 to 2018, while U.S. demand will steadily decline.

But developing countries and emerging markets will not simply be passive consumers. The IEA says these nations are investing heavily in oil storage, transportation and refining.

“In the next five years, virtually all net crude distillation capacity growth is forecast to take place in the emerging market and developing economies,” states the report.

The IEA also expects the African continent will present suppliers with “a new demand frontier.”

“There is growing evidence that African demand has been underestimated and is set to grow relatively steeply, albeit from a low base, in the next few years,” it stated.

Previously, the IEA projected that the U.S. will overtake Saudi Arabia to become the world’s biggest oil producer before 2020, and will be energy independent by 2030.

 

- Advertisements -
- Advertisements -

Latest News

Permian investments grow as market shows signs of recovery

CARLSBAD, N.M. (AP) — An American energy investment company has pledged $8.5 million to develop oil and gas assets in the Permian...

Closing prices for crude oil, gold and other commodities

The Associated Press Benchmark U.S. crude oil for November delivery rose 33 cents to $39.93 a barrel Wednesday. Brent crude oil for...

Closing prices for crude oil, gold and other commodities

The Associated Press Benchmark U.S. crude oil for October delivery rose 81 cents to $40.97 a barrel Thursday. Brent crude oil for...

U.S. Energy Development Corp. announces $8.5 million deal in the Permian Basin

U.S. Energy Development Corporation, an exploration and production firm that provides direct investments in energy, has announced an interest in a horizontal...

Closing prices for crude oil, gold and other commodities

The Associated PressBenchmark U.S. crude oil for October delivery fell 7 cents to $37.26 a barrel Monday. Brent crude oil for November...