U.S. oil production is rising sharply and increased output from shale will be a "game changer" in global energy markets in the coming years, according to a new report out Tuesday by the International Energy Agency.
"U.S. shale oil will help meet most of the world's new oil needs in the next five years, even if demand rises from a pick-up in the global economy," the Paris-based agency said in its five-year outlook, called the Medium-Term Oil Market Report.
"North American supply is an even bigger deal than we thought. A real game changer in every way," said Maria van der Hoeven, the IEA's executive director.
She said that North American production has set off a "supply shock that is sending ripples throughout the world" and urged the United States to dismantle the Export Administration Act of 1979, which bans the sale of U.S. crude abroad, except to Canada and Mexico.
"This issue is on the table. I think it has to be addressed because if there are no export licenses for crude, then the industry will find different ways, as they are looking for now already with processed, half-processed products, things like that," van der Hoeven said.
oh goodie, what do you know, getting economic advise from a playstation player. Domestic consumption in China now accounts for 50% of our growth and exports to the US is a tiny 17% of our total exports. That's why even though the American economy is doing poorly that we are growing much faster.
