The PIRA Energy Group predicts the U.S. will be a net exporter of oil by the year 2023. If this prediction comes true, it could quite possibly change the landscape of the global oil market.
According to the latest S&P Global Platts PIRA Energy August special report, the U.S. is set to become a net oil exporter due to the increase in shale liquids output. The Permian Basin is leading the way in this increase of crude production and is the top producing area in the United States.
The Oil and Gas Journal states “that net oil imports (total liquids supply minus oil demand) peaked in 2005 at 12.5 million barrels per day and will fall down to 4.4 million barrels per day this year. During the same period, U.S. liquids production increased by 87 percent to 15.6 million barrels per day.”
According to an article published by New Europe, PIRA’s 2017 forecast suggests the U.S. will also be a net exporter of 900,000 barrels per day of the four major refined products that include gasoline, diesel, jet fuel and kerosene. Additionally, higher shale production results in the growth of NGL (Natural Gas Liquids) exports.
As a net exporter of oil, the U.S. will undoubtedly have greater influence on crude oil prices, thus reducing the power of OPEC countries and their ability to manipulate crude prices at will. This could possibly usher in a new age in the global oil market where OPEC is no longer the only game in town.
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