The United States will overtake Russia as the world’s biggest oil producer by 2019 at the latest, the International Energy Agency (IEA) said on Tuesday, as the country’s shale oil boom continues to upend global markets.
This all seems to be an unbelievable turn of events. A few years ago, the rise of U.S. fracking flooded the market, and was blamed in part for the collapse and downturn. I recall reading a lot on how the Saudi’s and OPEC were going to let the downturn happen to kill off the U.S. shale industry, as it was claiming market share. Now, at $60-$65 per barrel, the industry can be profitable while the same nations that were trying to let the downturn crush the shale industry need oil closer to $100 to balance their government budgets.
While this sounds great for Americans, are we missing something. Is there a “Oh no” moment coming?
Published in Industry News, Markets, Production, Upstream
