New supplies would represent a paradigm shift in global oil trade
Abu Dhabi:A shale oil revolution made possible by the pioneering horizontal drilling and hydraulic fracturing technology may become the game changer in balancing the global energy market in the immediate future, according to experts.
As more countries get inspired by the US and step up their exploration efforts in shale, the global oil market looks poised to get flooded with new supplies. Given that fresh producing wells are set to come on stream in Canada, Iraq, Brazil and the US, there will be enough surplus oil on the market soon, to keep prices in check.
“There’s already enough shale oil being produced in the US to affect the global oil market. There are also shale deposits in China and if they can produce this oil relatively cheap, that would represent a paradigm shift in global oil trade,” Tamsin Carlisle, a person closely tracking the world oil markets for energy information services provider, Platts, told Gulf News.
Two of the world’s largest economies, the US and China are by far the biggest importers of crude oil.