Commonly refers to the spot price of a barrel of benchmark crude oil, a reference price for crude oil traders such as:
- Brent ICE
- Dubai Crude
- OPEC Reference Basket
- WTI (West Texas Intermediate)
- Bonny Light
- Urals oil
- WCS (Western Canadian Select)
- Tapis Crude
The International Energy Agency (IEA) predicted that the recent supply surge in U.S. shale oil and gas surpassed the largest gains seen in the history of the industry.
It is expected that by 2025, the development in American oil production will rival the numbers of Saudi Arabia at the peak of its expansion while the growth in natural gas will beat those of the former Soviet Union as stated in the IEA’s yearly World Energy Outlook. The boost will make the US, still one of the largest oil importers, into a net exporter.
As stated by IEA Executive Director Fatih Birol in an interview with Bloomberg tv on Tuesday, the United States will become the unbeatable leader of international oil and gas markets for the coming decades.
According to the agency’s estimates, the amount of shale oil that can be recovered can reach by about 30 percent to 105 billion barrels. Predictions for shale-oil output in 2025 were reinforced by 34 percent to 9 million barrels per day.
The IEA also stated that the U.S. industry has parted ways from its “trial by fire as a learner and hungrier version of its former self”, showing outstanding resilience and adapting to any indications of higher prices caused by OPEC’s comeback to active market management.
In spite of oil prices recovering to a two year peak of more than $60 per barrel, they’re still approximately half the level traded earlier this decade. It took Russia and the Organization of Petroleum Exporting Countries about 11 months of constricting production to clear up some of the oversupply.