Growth in US shale oil could soon force OPEC to take action, IEA says

“U.S. producers are enjoying a second wave of growth so extraordinary that in 2018 their increase in liquids production could equal global demand growth,” the IEA said in its closely-watched report published Tuesday. “This is a sobering thought for other producers currently sitting on shut-in production capacity and facing a renewed challenge to their market share,” In November 2014, the U.S. shale revolution prompted OPEC to announce a new strategy geared towards improving its market share. Analysts interpreted this move as an attempt to squeeze higher-cost producers, including U.S. shale oil, out of the market. Market conditions in early 2018 seem to be reminiscent of that first wave of U.S. shale growth, prompting the IEA to warn history could be repeating itself. This will continue as long as oil prices rise above a certain level. oilandgasOil and Gas News Undiluted !!! “The squeaky wheel gets the oil” Follow us: @OilAndGasPress on Twitter | OilAndGasPress on Facebook Disclaimer Most News articles reported on OilAndGasPress are a reflection of what is published in the media. OilAndGasPress is not in a position to verify the accuracy of daily news articles OilAndGasPress welcomes all viewpoints. Should you wish to provide a different perspective on the above article, please email us ]]>