Paris-based IEA predicts that US shale oil producers will boost their output by 8 million barrels a day between 2010 and 2025, an increase that "would match the highest sustained period of oil output growth by a single country in the history of oil markets" - rivaling even the massive increase posted by Saudi Arabia between 1966 and 1981.
"The US will become the undisputed global oil and gas leader for decades to come", said Fatih Birol, IEA executive director.
Investors increasingly opted not to bet on higher oil prices, following a report from the International Energy Agency showing it expects rising USA shale oil and gas production to at least be among the biggest gains in the history of the industry.
The emergence of the USA "represents a major upheaval for global market dynamics", said Dr Fatih Birol, IEA executive director. If the standards stay at today's levels, the US would remain a net oil importer in 2040.
The agency raised estimates for the amount of shale oil that can be technically recovered by about 30% to 105 Bbbl.
The U.S. industry "has emerged from its trial-by-fire as a leaner and hungrier version of its former self, remarkably resilient and reacting to any sign of higher prices caused by OPEC's return to active market management", the IEA said. It's taken the Organization of Petroleum Exporting Countries and Russian Federation nearly 11 months of production cuts to clear up some of the oversupply.
The International Energy Agency's forecast on demand have been abysmal and now once again they are low balling demand at least compared to OPEC which says that said oil use would grow faster than previously thought due to a stronger-than-expected world economy.
The World Energy Outlook 2017, released by the International Energy Agency (IEA) in London on Tuesday, presents a base case scenario that foresees the world's growing energy needs being met first by renewables and natural gas over the coming 25 years, as "coal strikes out" and nuclear's prospects dim. The world will use just over 100 MMbopd by 2025. That "will bring a lot of dollars to USA business".
The IEA said planned and unplanned disruptions from OPEC may be offset elsewhere, however.
Sparked by technological advances from its shale fields, US production will see growth of 8M bbl/day during 2010-25, accounting for 80% of the increase in global supply over the period, the report says.
If US production stays at current levels, the IEA said, and a trend towards adopting electric cars accelerates, prices could stay between US$50 and US$70 a barrel until 2040.
"There could be further surprises ahead", the IEA said.