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US set to become net exporter of oil: IEA

AFP  |  Paris 

Crude production is set to continue expanding in the thanks to shale oil, with the country becoming a net exporter from 2021, a development which should reinforce global security, the IEA said Monday.

"The second wave of the US shale revolution is coming," Fatih Birol, the of the International Agency, said in a statement.

New technology that allows for extracting and gas from shale rock formations has led to a boom in production in the in recent years. With low production costs, that boom is set to continue.

The IEA forecasts the will account for two-thirds of the increase in global production and some three-quarters of the expansion of liquefied (LNG) over the next five years.

This will help the United States surpass and nip at the heels of as the world's top exporter.

"This will shake up international trade flows, with profound implications for the geopolitics of energy," said Birol.

Rising US shale production was one of the main drivers in the collapse in in 2014, from which the is just recovering.

Production outside the OPEC is set to continue rising, according to the IEA, which sees it climbing by 6.1 million barrels per day (mbd) to 68.7 mbd in 2024. In addition to the United States, both and are expected to increase output.

Meanwhile, OPEC output is expected to dip in 2019 and 2020, before resuming modest growth to 32 mbd in 2024.

Overall, global output is expected to rise by 5.9 mbd by 2024, with output in expected to drop due to US sanctions and thanks to its deep economic crisis.

The IEA also sees growth in demand for oil to ease, in particular due to slowing expansion in Nevertheless, it sees demand increasing by an annual average of 1.2 mbd to 2024.

and will still account for nearly half of the global increase in oil demand, which is expected to rise by 7.1 mbd to 106.4 mbd in 2024.

Moreover, the IEA continues to see no peak in

The petrochemicals sector and jet fuel will be the key drivers of growth, "more than offsetting a slowdown in gasoline due to efficiency gains and electric cars", said the IEA.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, March 11 2019. 17:16 IST