The U.S. is set to steal oil market share from OPEC over the next five years. The International Energy Agency says the surge in U.S. shale oil production will help what was once the world's top oil importer get closer to becoming self sufficient. What's more, the agency says that by 2023, the U.S. will become by far the world's top producer of oil liquids.
Growth from U.S. shale fields is more than expected to offset declines in conventional supply. As a result, the IEA says U.S. oil output will rise by 2.7 million barrels per day to more than 12 million by 2023. Leading that growth: the Permian Basin in Texas and New Mexico.
But as U.S. supply surges, the report forecasts that demand for crude from OPEC producers will drop below current production in 2019 and 2020. That suggests a return to oversupply if the oil cartel keeps output steady.
Mizuho Americas futures director Bob Yawger said, "It implies more barrels, more barrels for longer, and implying genuine risk to OPEC. It's a real exclamation point as far as shale production is concerned."
Crude oil prices rose after the report.